More than 90% of small firms in the City are complaining to the Financial Services Authority about the burden of regulation, reports the Daily Telegraph.

Under the Government's new regime, the FSA has a practitioner's forum set up to pass on the views of City professionals. In its first annual report yesterday, it found that 94% of small firms agreed strongly or slightly when asked if the current regulatory system places too great a burden on the financial service industry. Nearly half of smaller firms - 44% - also said their costs had increased as a result of the creation of the FSA. Three out of four of the 4,000 city professionals surveyed by the forum - including those from larger firms - said they thought regulation was over the top.