Industry veteran Ken Davy has demanded answers from the Financial Services Authority (FSA) on why it did not disclose the fact it had ordered changes to Arch Cru marketing materials before the collapse of the investment scheme.
Mark Hoban revealed the FSA's intervention to Parliament last week, suggesting it would have been beneficial if the regulator had been able to publicise the changes it had made.
Davy, the chairman of Simplybiz, described the disclosure as a "key piece of information in relation to the Arch Cru debacle" and called on the FSA to give more details about its actions.
He said: "Not only have consumers been seriously disadvantaged but also the advisers are being criticised and threatened in relation to Arch Cru as well.
"I think consumers and advisers have an absolute right to know when these concerns arose and what and when the changes were made."
The FSA is currently reviewing the sales and advice on Arch Cru products and is expected to reveal its findings at the end of the month.
The announcement could trigger more claims against advisers and the Financial Services Compensation Scheme (FSCS) has already indicated that some claims will exist against failed IFAs.
A provisional Ombudsman judgement published last year upheld up a complaint against an IFA who had invested a client in Arch Cru, saying the unnamed adviser would not and should not" have appeared to represent a low or cautious investment risk in early 2008
The adviser had argued he was relying on the IMA's categorisation of the fund as cautious managed.
A spokesperson for the FSA said it was not possible to divulge any details about the intervention on Arch Cru marketing materials.
Was responsible for IT and transformation
There are 1,840 asset management firms with £8trn AUM
Also unveils trust IPO raised £100m
Paul Bruns and Elaine Parkes
3,000 left to transfer