Ron Sandler's recommendations run the danger of being achieved at the expense of consumer protection says the Financial Services Consumer Panel.
It says removing the obligation to provide “suitable advice” and “know their customer” could potentially lead to future misselling scandals.
The Panel points out that misselling in the past of personal pensions, mortgage endowments and FSAVCs have been the result of firms making unsuitable sales.
Panel chairman Colin Brown says: “Under the proposed regime, the consumer will need to know more about financial planning than the salesperson. All responsibility for matching a product to a person's needs is being pushed on to the customer. The Sandler plans are to sweep away the suitability rules which protect the consumer.”