The Financial Services Authority (FSA) has ignored calls by the Treasury Select Committee to postpone the implication of the Retail Distribution Review (RDR) by a year.

The financial services regulator said the RDR - which is set to change the way financial advisers are remunerated and require minimum qualifications - would go ahead as planned.

In a statement it reported, 'The FSA notes the report's recommendation on timing but remains committed to implementation from January 2013.

'The RDR is already a long-running initiative with the first consultation paper published in June 2007.'

It added, 'There is clear evidence that the industry is well advanced in its preparations, with 49 per cent of IFAs [independent financial advisers] already qualified and at least 82 per cent expecting to remain as retail investment advisers.'

Andrew Tyrie, chairman of the Treasury Select Committee, said although the committee backed reform, the current timetable could lead to large numbers of IFAs leaving the business.

He said, 'In the interests of consumers we are calling on the FSA to delay the RDR by a year to give advisers more time to take the qualifications and comply with the rules.'

Kay Blair, vice chair of the Financial Services Consumer Panel, said advisers had already had several years to reach minimum qualifications.

She said, 'While we acknowledge the cost in terms of time and fees that some advisers will incur in achieving the minimum qualification level, there can be no justification for the FSA to back away from this important requirement at this late stage.

'MPs would be rightly outraged if their constituents were treated by doctors with ‘A' level qualifications or advised by poorly qualified lawyers. There should not be a double standard when it comes to financial advice.'

She added, 'Four years have already passed since the FSA set out the overall objectives for the RDR.

'Further delay will only risk harm to consumers as the effects of poor financial advice - and the burden of opaque fees and costs - can last a lifetime.'

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