Protection advisers should fully expect a regulatory review of commission, Jelf has warned.
Alex Always, chief executive at large advice firm Jelf, said, to a recent Association of Medical Insurance Intermediaries (AMII) conference, that he would be "incredibly surprised" if a commission review did not happen in the next few years.
He said: "It is not actually as bad as you think. Changing regulation actually focuses you on getting your act together and embracing a new world."
Branko Bjelobaba, founder of Branko Ltd, and AMII compliance consultant, said after the conference that he did not see a review on commission whereby protection could only be sold on a fee basis.
He said: "My point on this is a bit wider. There may be a review in that what advisers are earning on commission from protection products may have to be made more transparent to clients.
"At the moment advisers do not have to tell clients of their earnings so that could very well change."
Bjelobaba pointed to a similar review in Europe currently with the Insurance Mediation Directive II.
He told the conference that small firms selling individual protection or PMI should also be mindful of the FSA's small firm supervisory programme.
The regulator's four-year programme has swept the North West, South West and West Midlands and is currently approaching Scotland and Northern Ireland.
Bjelobaba warned it was "likely" most small firms in the remaining postcodes would experience the FSA two-hour risk assessment and should be prepared.
He said: "Firms should not worry. If they are compliant with FSA rules it will be normal business practice to have a chat with the regulator."