The reform of polarisation of financial advice will increase the costs and reduce the quality of choice of financial products, according to the ‘Association.
Sheila McKechnie, director at the Consumers’ Association, said: "We are deeply concerned by the regulator’s plans to hand over financial advice to the major high street banks. These reforms appear to be in the interest of the major banks and insurers and not the millions of us that need a fair and affordable system of advice.
"We urge the regulator to go back to the drawing board and think again. We just have to remember what happened last time the banking industry and insurance industry got together on such a huge scale – millions of rip-off mortgage endowments were sold by commission hungry salespeople."