According to the annual FCA Practitioner Panel survey, conducted in February and March 2013, 37% of all firms believe that FSA were ineffective.
With the implementation of RDR in 2012, the negativity was driven by small firms have been affected, FCA said.
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The survey says: "Respondents believed that RDR was pushed through with no real thinking about how it would work in practice; the timescales and costs of implementation were unclear, and this resulted in the industry being hit with higher costs.
"There is strong underlying belief that ultimately the RDR does not benefit consumers as a large proportion of the population is now excluded from receiving advice.
"The implementation ‘on the ground’ has been poor and firms feel that there has been a lack of practical assistance and guidance."
The survey shows 55% of all firms were dissatisfied with the regulator, including 16 per cent who said they were extremely dissatisfied.
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By GlobalDataFCA chief executive Martin Wheatley said: "From this last survey undertaken at the FSA, it is clear that firms believed there are some areas which could be improved.
"As the FCA, we have changed our approach and the way we regulate, and we are becoming a more forward-looking, predictable and engaged regulator which acts from a position of greater understanding of the industry," Wheatley said.
