Aifa says there is still a long way to go before the proposals are finalised.
It has praised the split between advice and sales and also the requirement for advisers to offer whole of market advice.
Director general Chris Cummings says: “We’re pleased that the FSA has been true to its word and put the needs of the consumer at the heart of its proposals. Given the economic climate, consumers need professional financial advice now more than ever.
“From the outset, we have said that the RDR should enable more consumers to get access to better financial advice. Consumers have a right to know whether or not they are being advised or sold a product, and they must have a choice over how they pay for that advice.”
Cummings adds that the call for higher adviser qualifications is also to be welcomed.
He says: “It is in everyone’s interest for the adviser community to have a common set of standards. The FSA recognises the need for a realistic transition period to ensure advisers have enough time to meet the new standard.
“The FSA indicates that all these proposals need to be reviewed in light of European Directives and the wider regulatory landscape. We will be working with the FSA to ensure advisers’ views continue to be heard.”