IFAs and consumer groups have derided the Office of Fair Trading's report on polarisation as a "dog's dinner" which will bewilder consumers.
The much-delayed report calls on the Government to scrap polarisation rules for unit trusts and Oeics, while maintaining the status quo for life insurance and personal pensions.
While the industry has taken comfort from the report's acknowledgement that IFAs are good for the consumer, IFAs say any attempt to implement its recommendations will simply compound confusion.
The OFT says that for life and pension products polarisation's distortion of competition and retail innovation is outweighed by the protection it offers to consumers.
But it says that in the case of "simple and transparent" unit trusts and Oeics, multi-ties would give consumers access to more sources of advice and a greater selection of products.
Life Insurance Association public affairs director John Ellis says: "It is unbelievable. It is a shambles and a dogs dinner.
IFA Association head of technical services Fay Goddard says: "There is not a consumer in the country who will understand the difference between a polarised and a non-polarised product."