Industry veteran Ken Davy has criticised the FSA for refusing to restructure the Retail Distribution Review (RDR) following the effects of the banking crisis.
The SimplyBiz CEO said the trading environment "is completely different to the financial world when RDR was first thought of."
"To continue blindly on in the way the FSA has done has been fundamentally flawed," he said.
"When you look at the FOS statistics, the number of cases is tiny regards consumer detriment.
"When you dissect them what it actually shows is that, in a 30-year career, an average adviser might get two or three complaints and only one of those might be found against them.
"Lawyers, accountants and every other profession would be proud of that. Yet those facts get ignored.
"We're going to see a reduction in the availability of financial advice and the cost of the whole exercise is going to far outweigh any benefit."
Davy dismissed as "scaremongering" claims there would be a mass exodus into the restricted sector, though he estimated around 20% of advisers had either retired or reduced their permissions in the last two or three years.
SimplyBiz's Practice Buyout proposition had been "reinvigorated" by RDR, catering for around 50 firms looking to exit before 2013.
"We're acting as a marriage bureau, trying to act for the mutual benefit of buyer and seller," Davy said.
Early indications showed the group would be reporting a "useful increase in profitability" in its annual results in May, Davy said, though there were no plans for serious expansion.
Competitors should be looking at their own pricing structures before doing the same, he said.
"It astonishes me how many nationals and networks fail to make a profit, despite charging massive sums to advisers.
"It's still not unusual to find a larger firm playing £30,000 per year to their network or compliance company, whereas our most expensive package is £6,000."
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