Firms in the retail investments sector, which includes most financial advice firms, had one of the lowest levels of satisfaction with their relationship with the FCA.

Just 67% of firms in the retail investment sector scored their relationship with the FCA a seven or more out of ten.

In comparison 86% of those in retail banking and 82% in investment management gave the FCA a similar rating.

The sector least satisfied was the pensions and retirement income sector, another area advisers commonly operate within. In this sector just 57% of respondents to the FCA’s Practitioner Panel Survey rated their overall satisfaction in their relationship with the FCA at seven or more out of ten.

Overall, 74% of respondents working within non-consumer credit firms rated their overall satisfaction in their relationship with the FCA at seven or more out of ten.

Respondents working within the retail investments sector also had doubts over whether the regulator acts proportionately. Just 29% of those working in the retail investments sector surveyed said they agree that the FCA acts proportionately so that the costs imposed on firms are proportionate to the benefits gained.

They were also the least likely to agree that the regulatory framework was trusted by market participants, with just 35% agreeing with the statement in comparison to 48% of all firms.

In its report, the FCA said it was already working to improve by doing more to facilitate growth, acting proportionately and improving data collection to reduce the regulatory burden on firms.

Firms were asked how their trust in the FCA had changed over the last 12 months.

Overall, 13% of firms said that their trust in the FCA had increased over the past year. The proportion of firms reporting an increase in trust was notably higher in the retail banking sector (34%), and the pensions and retirement income sector (25%).

The proportion of firms reporting that their trust in the FCA had decreased over the past year was relatively similar across the sectors, ranging from 6% in the investment management sector and the retail banking sector, up to 12% in the retail investments sector.

Given the focus of the regulator’s new Consumer Duty on the clarity of communications, it was interesting to see that around three quarters of firms agreed that the FCA’s communications were clear (73%) and consistent (78%), and a slightly lower proportion (69%) agreed that the communications were relevant.

• The FCA and Verian surveyed 6,608 FCA regulated firms between February and April.