Regulations have been brought in to standardise products and improve the service providers offer, but they believe this is lowering consumer confidence - the opposite reaction that the FSA is working towards.
According to the research, a key challenge facing providers due to changing legislation is maintaining a cost effective business model with the added cost of supporting the legislation. Many organisations have had to increase their IT budgets or delay impending IT projects to ensure that they are compliant and future proof. Reviewing and understanding the impact of legislation on the organisation was the next key obstacle for providers, as this also impacts time and resource.
Now in its sixth year, the Focus Quotient is well established as the industry benchmark study for the growth of electronic trading in the life and pensions industry and represents over 75% of the leading UK providers. The research highlights the effects legislation is having on the industry including MiFID, TCF and other developments in the industry such as wrap platforms and holistic financial planning.
Richard Stevenson, Chief Executive Officer, Focus Solutions Group plc, commented:
âRegulation is a constant in the financial services industry and as we have heard from providers unsurprisingly it is having an impact on working practices, affecting consumerâs confidence in the marketplace. The FSA publishes up to ten consultation pieces a year and to keep up with demand, providers require smarter technological solutions that enable them to future proof their sales systems against changes in legislation. Focusâ front office solutions are leading the way in developing processes that can adhere to environmental and regulatory changes.â