The Investment and Life Assurance Group says the FSA is moving in the right direction with its polarisation recommendation but says the regulator has not gone far enough.
Ilag intends to push for full depolarisation of advice on all financial products when it takes part in the industry consultation next year.
The London Society of Chartered Accountants supports ILag's call. It says the proposals are much needed and a new, more transparent distribution system would serve consumers better.
Ilag says a decision over how stakeholder pensions can be distributed must be made quickly to give the industry time to decide before the April start date if they are going to enter the market.
LSCA deputy chairman Howard Gross says: “Peo ple who call themselves independent advisers but merely sell from a panel of products and do not investigate the whole market are anything but independent.”
Ilag chairman Phil Smallwood says: “We are del ighted that the announced changes to the polarisation regime are broadly in line with our recommendations made during consultation.
“The relaxation of the polarisation rules will be of great benefit to member companies which will be able to make a wider range of products available to their consumers.”