From this week IFAs will be able to apply for mediation when they are being investigated by the FSA.
Following a review of the regulator's enforcement process, the FSA has decided to provide greater access to the mediation process in an attempt to encourage firms to settle more quickly.
Firms will be able to apply for mediation on all areas of investigation except criminal cases. This includes unfitness, impropriety and variation of permissions.
FSA spokesman Robin Gordon-Walker says the intention is that less complicated cases will be able to be mediated at a lower cost He says so far mediated cases have ranged in cost from £2,000 to £7,000.