Bringing you live news and features since 2006 

APFA urges advisers to highlight regulatory costs to clients


The Association of Professional Financial Advisers (APFA) has published its second annual Cost of Regulation report alongside a regulatory costs disclosure template for advisers to use in their communications with clients.

APFA’s research estimated that on average, small to mid-sized firms spend 12 per cent of their income on direct and indirect regulatory costs. Of this, 3 per cent is spent on direct fees and levies and 9 per cent on indirect costs including compliance, reporting and managing time taken to deal with regulation. These are the same proportions as last year.  Given the current size of the market and number of clients, this means that the average client is paying approximately GBP160 each year towards the cost of regulation.
Chris Hannant, APFA’s Director General, says: “Based on advice firm responses, our research shows that each client is still paying hundreds of pounds every year to cover the cost of regulation.
“At a time of heightened policymaker concern about what measures are required to broaden consumer access to professional financial help, it is vital that radical steps are taken to reduce costs and make advice more affordable to those that need it.
“APFA will continue to urge politicians and regulators to use the Financial Advice Market Review as an opportunity for reform. Advisers can be more proactive and transparent in highlighting to their clients how much of their bill is simply to cover regulatory costs.
“This is why our Cost of Regulation report this year includes a costs disclosure template.  Advisers can use this to raise consumer awareness of the impact of regulatory fees and levies as well as the expenditure firms have to undertake to keep up with continually-changing regulation.”

Latest News

Amundi’s ETF Market Flows Analysis for May finds that global ETF inflows were EUR105.1 billion with US-domiciled equity funds accounting..
MerQube has announced the appointment of Dave Mueller as Chief Financial Officer. Mueller brings 17 years experience operating in corporate..
Northern Trust Asset Management (NTAM), has announced that David Abner is joining as Head of Global ETFs and Funds...
Nvidia’s market cap surge to more than USD3 trillion making it the second most valuable company in the world almost..

Related Articles

Darren Johnson, Komainu
Custody specialist, Komainu, was launched in 2018 as a joint venture between Nomura, digital-asset investment manager, CoinShares and blockchain business,...
Stuart Chaussee
In January this year, global data and business intelligence platform, Statista reported that there are now more than 8000 ETFs...
Ethereum coin
Last week saw Australia launch spot bitcoin ETFs, with Matteo Greco, Research Analyst at Fineqia International, writing that Monochrome Asset...
Timothy Rotolo, Range Funds
In 2023, Timothy Rotolo launched his business, Range Fund Holdings, the parent company for Range Indices and Range ETFs, followed...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by