Financial Services Authority chairman Howard Davies indicated to the Treasury Select Committee inquiry this week that the FSA might take on board some IFA Association ideas on simplifying phase two.
But he emphasised that overall the review would continue as currently constituted.
He also refuted suggestions that the PIA was abusing its powers over phase two and in particular over complaints from 15 IFAs raised with him by committee member Sir Teddy Taylor.
He said: "We have listened carefully to representations from IFA organisations about simplifying the process. Some of these points we can respond to but the individual cases don't portray a systematic problem."
He also suggested that a balance had to be struck between access to the planned appeal tribunal under the jurisdiction of the Lord Chancellor and the need to keep costs down for smaller firms.
Davies also accepted that low persistency rates for pensions and life insurance showed that there was still a problem with some advice while laying the blame for pension misselling almost entirely with life offices' misunderstanding of the previous act.