The Tory MP for Suffolk Coastal said there must be a clear distinction between the two channels in order to increase consumer understanding of financial services.
Gummer said: “Ordinary people must know the difference between sales and advice and that distinction is crucial.”
He was also critical of existing regulation, insisting it needs to be improved, rather than added to.
Gummer said: “We don’t want more regulation, we want better regulation. The truth is that no one can say the regulators have shone during this difficult financial period. We don’t need more regulation, we’ve had enough regulation and it hasn’t actually worked.”