FSA chairman Howard Davies has condemned the polarisation regime as having failed consumers in a statement issued with the FSA's de-regulatory proposals today.
Davies says: “This is a significant liberalisation package to enhance consumer choice by breaking the shackles that polarisation puts on competition and innovation.
“Our aim is to secure long-term improvements for consumers through greater access to advice and greater choice in the financial products available to them.
“The extensive research we have carried out as part of this review demonstrates that the regime we inherited now represents a major market distortion and has simply not delivered sufficient consumer benefits to justify maintaining it. So we propose that it should be abolished and new enhanced disclosures should be introduced to ensure that the consumers are clear about the different types of adviser available to them.”