The FSA has delayed publication of its RDR professionalism policy statement, due this month.
In November, the Treasury select committee launched a consultation on the RDR and is seeking written evidence on whether the RDR will achieve its stated outcomes.
The FSA says it wants to ensure it has an opportunity to provide the Treasury select committee with a “comprehensive rationale about why it remains committed to delivering the RDR”.
The FSA says it plans to publish final rules and a policy statement in January 2011 and “remains fully committed” to implementing the RDR in January 2013.
In a letter to committee chairman Andrew Tyrie dated December 13, FSA chief executive Hector Sants set out why the regulator remains committed to the RDR.
Sants writes that problems with mis-selling scandals and a lack of consumer trust continue to exist in the advice market and that fundamental changes are needed to address these issues.
The FSA estimates the average cost of annual consumer detriment caused by unsuitable product sales to be between £400m and £600m.
Sants says the RDR will ensure customers get good quality advice, products and services suited to their needs from advisers displaying higher standards of professionalism and expertise.
He adds the regulator does not agree with the argument that the RDR will threaten the availability of good quality advice.
Sants says: “Any dilution of the proposals will result in an increase in the cost to consumers through continued mis-selling.
“Despite the vocal concerns of some in the IFA community, we believe the RDR is absolutely fundamental to address the root causes of numerous problems we have observed in this sector and to improve consumer outcomes.”