AIFA policy director Andrew Strange has warned ministers the RDR is likely to be seen as a failure because it does not meet the key standards of good regulation, including avoiding constant flux.
The trade body warned the Treasury the FSA's successor can only help advisers by bringing in less change, fewer "new ideas" and more consistent delivery.
In a report out today, A Manifesto for Regulation, AIFA says regulation should be governed by six high-level principles, including proportionality.
Strange says: "Judging the current RDR by these six principles there is a real danger it will be seen as a failure. While we support the original objectives there is a serious risk of driving out good firms, increasing the costs of advice and reducing access to the financial services market for UK citizens.
"The success or failure of regulation in the future needs to be measured against these standards. The new regulator needs to address the wider public policy agenda in order to help consumers re-engage with their long term financial well-being and making more, and better, provision for themselves."
He adds constant regulatory flux deters financial investment in firms and weakens consumer trust in the sector.
Strange says:"Regulation must be cost effective and focused on those that pose the greatest risk and include robust external accountability mechanisms."
The report has been submitted to both the Treasury and the Treasury Select Committee as part of their reviews of the proposed regulatory changes.
Regulation should be judged by its ability to enable better outcomes for more consumers, having appropriate checks and balances in place to ensure accountability, work in a proportionate and risk-based way, and changes less, with fewer "new ideas" and more consistency of delivery, says AIFA.
It should also be cost effective and take into account the European dynamic at play, according to the body.
AIFA is also encouraging members to use the report to engage directly with MPs on regulatory reform and the issues affecting the advice profession.
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