The vast majority (96%) of wealth management and financial advice firms feel that regulatory change is diverting time and resources away from other priorities.
Overall, 29% believe that this is happening to a “large extent”, according to the inaugural Personal Investment Management & Financial Advice Association (PIMFA) Regulatory Insights Tracker.
Over half (54%) of firms believe the need for clearer and more consistent regulatory communication should be the biggest regulatory priority for the next 12 months.
This is followed by simplified reporting and reduced duplication of returns (48%).
Additionally, 79% of firms reported an increase in compliance expenditure over the past 12 months.
The transparency surrounding compliance is split, with 54% saying they feel clearer about what is required to remain compliant compared with this time last year.
The other 46% still do not feel clearer about how to best remain compliant with regulatory requirements overall.
The compliance picture is being dominated by Consumer Duty as 85% of respondents said it was the requirement demanding the single most time and attention.
Only 39%, agreed that proposed changes around targeted support and simplified advice would help their firm deliver better outcomes for more customers.
PIMFA director of government relations and policy David Ostojitsch said: “The wealth management and financial advice sector plays a critical role in supporting households, businesses and the wider economy, managing over £1.65trn in savings and investments.
“These findings indicate that while our members are committed to delivering the best possible outcomes for clients, the cumulative impact of regulatory change is making it harder for firms to do so, while juggling other priorities.
“There has been real progress in some areas, and we welcome the work the FCA are doing to improve this burden for firms, but there remains more to do.
“In line with its desire to be a smarter regulator, we need to see a regulatory framework that is simpler, more proportionate and more consistent for firms to thrive and continue supporting long-term growth in the UK economy.”
In order to obtain these results, PIMFA surveyed 52 wealth manager and financial adviser member firms in September 2025.
