The FSA's refusal to extend the timetable for meeting its professionalism rules, published today, hands a competitive advantage to large firms and banks, says Harriett Baldwin MP.
Baldwin has been lobbying in Parliament on behalf of IFAs who say they need more time to meet the new QCF Level 4 requirement, through exams, gap-fill or both.
But in today's FSA policy statement on professional standards, the regulator confirms all investment advisers will have to meet its standards across all areas by 2013, even if they do not advise on those activities.
It states: "We accept that this is a difficult area, and are aware that many firms make clear in their terms of business that they do not offer advice in all areas.
"However we still hold the view that we have reached an acceptable balance at this time."
Baldwin says the move will reduce access to financial advice in her constituency of West Worcestershire, and hand a competitive advantage to large firms and banks.
"My concern continues to be that many of my constituents who are IFAs with unblemished regulatory track records will struggle to pass the new qualification level in time and will lose their livelihoods."
She says she remains unconvinced passing exams would prevent the kinds of mis-selling that resulted in Barclays receiving a £7.7m fine from the FSA this week.
"I regret that the FSA has not been able to listen to the concerns of my constituents."
The FSA says it appreciates some of the activities advisers must prove knowledge of are "fairly broad", but argues it alleviates this by allowing a wide range of routes to getting qualified.
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