The report suggests separating advice from sales. Sales will be split into execution-only and guided sales while advice must be whole of market.
The BBA says consumers will be worse off because they will either have to pay for independent advice or buy products without advice, which is potentially risky.
Chief executive Angela Knight says: “Many customers have a good idea of what they need and want to get advice and buy their financial products from a brand they know and trust. The FSA proposals could remove this option, leaving individuals with the choice of either more expensive options or buying without advice.
“Of course we are in favour of improved clarity for consumers, but this shouldn’t come at the expense of consumer access to trusted and cost-effective advice. The FSA should think very carefully before introducing changes that may restrict customer access to advice, which is contrary to one of the key objectives of the review.”