The FSA has been criticised by brokers and insurers over its 'arrow' visits.
Firms have slammed the regulator for its failure to provide guidance on their performance following visits. They have also complained of a confrontational approach by FSA staff.
Arrow visits are used by the FSA to assess the risk that regulated firms pose to its statutory objectives.
A survey conducted by law firm Beachcroft Wansbroughs found that more than two thirds of firms (69%) were frustrated by the FSA's failure to provide guidance on how they could lower their risk assessment rating.
Furthermore, 41% of firms said they were frustrated that guidance was not given by the FSA on prioritising actions required to improve their performance and service to customers.
Nigel Frudd, head of financial services at Beachcroft Wansbroughs, said: "The FSA needs to address these issues if it is to be respected by those it regulates and be fully effective in achieving its stated aims".
An FSA spokesman said the regulator welcomed the feedback.
"We have already embarked on a significant process of change and development of 'arrow' visits, designed to address the feedback from this survey as well as other feedback we have received".
136 firms from all segments of the financial services industry took part in the survey.
