Chris Cummings, director general of Aifa, said that the two organisations shared the view that future changes to regulation should offer a “better” outcome for consumers.

Last week, John Howard, chairman of the FSCP, said that the organisation’s research revealed many consumers are “generally confused” about the type of advice they are receiving.

However, Mr Cummings argued that “muddying the water” with new levels of advice is unlikely to improve the situation.

“In our view, independence means being able to offer whole of market advice, regardless of remuneration method,” he stated.

There is presently a “clear desire” among consumers for the choice to pay for advisory services via product charges and the industry “must retain this option”, Mr Cummings remarked.

He warned that abolishing the commission option could potentially mean that financial advice becomes the “preserve of the wealthy”.

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