The number of highly-regulated financial advice firms that said they are satisfied with the FCA has fallen by 12% to three-quarters of businesses in the last year.

The figure comes from a joint survey of FCA regulated firms published by the FCA’s Practitioner Panel.

It found the proportion of fixed firms reporting a high level of satisfaction with the relationship they have with the FCA fell from 84% in 2023-24 to 74% in 2024-25.

The proportion of fixed firms that gave a high rating for the perceived effectiveness of FCA regulation fell 20%, from 84% to 67% over the same period.

Fixed firms are the 65 business that received the highest level of supervisory attention, the regulator said.

The survey also looked at flexible firms, which the FCA said comprises the remaining 36,579 financial advice businesses that are subject to lighter touch, but still rigorous, supervision. Satisfaction levels remained static among those firms.

The proportion of flexible firms that gave a high satisfaction rating for their relationship with the FCA remained almost unchanged at 75%, compared to 74% in 2023-24. The proportion who gave a high rating for the effectiveness of FCA regulation also remained stable, at 70%.

Fixed firms’ trust in the FCA fell slightly compared with 2023-24, according to the report, with 7% stating that their trust had increased while a higher proportion, 11%, reported that their trust had decreased.

Changes in trust levels for flexible firms were also evenly split, with 11% stating their trust had increased and a similar proportion, 10%, stating their trust had decreased. Fixed and flexible firms were generally positive about FCA supervisors and FCA staff.

Matt Hammerstein, chair of the FCA Practitioner Panel said: “The results highlight both the progress the FCA has made and the areas where further improvement is needed. It is encouraging that trust levels, along with perceptions of staff knowledge and experience, have remained steady, and many of the areas for improvement align with priorities set out in the FCA’s new five-year strategy.”

He said the Practitioner Panel will use the input gathered from the survey to continue to provide constructive challenge to the FCA.

Firms told the regulator the areas it can improve on, including:

• Taking further steps to support growth and competitiveness
• Continuing to reduce unnecessary data requests, by asking for only what it needs
• Streamlining its supervision approach by reducing the amount of correspondence firms receive

Nikhil Rathi, chief executive of the FCA said: “We’re already taking significant strides to address these priorities and drive meaningful improvements where they matter most.”

• The survey was conducted by Verian on behalf of the FCA and the Practitioners Panel. Fieldwork took place between 3 February and 31 March. In total 7,569 firms completed the survey. Of these, 5,395 were non-consumer credit firms (with a response rate of 33%) and 2,174 were consumer credit firms (a response rate of 11%).