It's not really surprising that most traders don't survive their first year. Most small business startups don't survive a year either and can have considerable set-up costs in the form of stock, premises and whatever else. There's no guaranteed stop loss in business.
Internet trading requires only small capital risk (if you're sensible about it) and the opportunity to learn how to trade at your own pace. Using Demo accounts it's possible to practice risk free, to try out strategies, to evaluate 'tipsters' and measure the validity of hunches before committing any cash at all to the exercise.
Trading is a skill and it costs money to learn most skills. Consider the cost of driving lessons, golf lessons, and let's not even think about the estimated forty thousand pounds it costs to get a degree!! (with no guarantee of ever being able to repay a student loan)
I think the FCA proposals are out of order and well over the top, they will merely exclude some small traders ever being able to start out on what is an interesting and highly educative activity.