Tenet has expressed concern over the FSA’s statement that the new Financial Conduct Authority will be a much more interventionist regulator and that this will come at an increased cost.

The adviser support group argues that the burden of over-regulation and the mounting costs associated with it over the past two decades is contributing to a contracting market, which is resulting in poorer consumer outcomes both in terms of access and overall service for all but the affluent sector.

Tenet says that with further contraction forecast across the industry, resulting in reduced access to advice, the fight for survival amongst the life offices is set to continue. This is already impacting millions of consumers who remain locked into poor performing legacy products, especially those with policies in closed funds, it claims.

A reduced service standard is also typical, as the acquiring company takes people and cost out with the objective of increasing its own profits at the policyholder’s expense.

Keith Richards, Tenet’s distribution and development director, said: “This latest statement will further disenfranchise the FSA. Proposing even more cost at a time when both the industry and the country are economically-challenged is definitely the wrong solution to the perceived problem.