Sesame Bankhall Group today backed MPs' call for a 12-month delay to the implementation of RDR, saying the move could mean an additional 500,000 clients continue to benefit from advice from its IFAs.
A delay would mean more advisers would be able to meet the Review's requirements, it said.
The FSA rebuffed the call from the Treasury Select Committee for a delay to RDR, saying it plans to press ahead with plans to roll out the Review's recommendations from 1 January 2013.
But Sesame Group executive chairman Ivan Martin (pictured) said: "We welcome the TSC's recommendation for a delay.
"The economic turbulence of recent years has pitched adviser firms into an operating environment that is far removed from the one that existed when the FSA initiated the RDR in 2006.
"The TSC's recommendation for a delay would enable more advisers to get across the RDR finishing line and reduce the advice gap that could otherwise deprive people of the valuable service they receive from their adviser."
Sesame said it also welcomed the TSC's recommendation that the Committee on the Draft Financial Services Bill consider whether there is a compelling case for a long-stop.
"An open-ended liability from past business is an unfair and unacceptable burden on all professional firms," Martin added.
"We will encourage our members to lobby MPs across the UK on this pivotal issue. We will strive for a solution that strikes the right balance between safeguarding consumers' interests and delivering greater certainty and much needed future investment in the IFA sector.
"Only a buoyant financial advice profession can help people to protect and save for their future in sufficient numbers."
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