However, there is at the same time a widespread belief across the industry that the current regulatory system places too great a burden on firms: 82% of firms agreed with this in 2008, although this was slightly lower than the 86% in 2006.
The level of satisfaction with the FSA as regulator varied according to type of firm and how they interact with the FSA. Wholesale firms are typically more satisfied, when asked about the FSA's performance and/or their regulatory relationship, than retail firms but the gap has narrowed. Smaller firms remain less satisfied than larger relationship-managed firms, but again there are signs that the gap is closing.
Satisfaction with the FSA's Firm Contact Centre has improved, as has the quality of guidance it provides, especially with those (mainly smaller) firms who have used that facility in more recent times. Smaller firms with less than 20 full time staff, firms without a relationship manager, and retail firms were all more likely to see the current regulatory system as being too great a burden on firms. Almost half of very small firms (44%) agreed strongly that regulation was too great a burden compared with just over a quarter of firms with 20 or more full time staff (27%).
Nick Prettejohn, Chairman of the Financial Services Practitioner Panel said: "This survey gives a useful readout of the attitudes of the industry to regulation taken around the middle of 2008. Not surprisingly, there was a sharp decline in the rating given by the industry in the rating of the FSA for maintaining confidence in the financial system, although there was no change in firms' rating of the FSA's performance versus its other objectives. It contains messages that the FSA is already responding to post Northern Rock - that effective supervision by people who understand the business issues and industry needs provides the best type of regulation. The more that the FSA communicates and interacts with the industry, the more effective its regulation will be. We in the industry recognise the need for regulation, particularly at this time, and we stand ready to engage in that process with the FSA."
