The incoming Financial Conduct Authority (FCA) may change rules introduced following the Retail Distribution Review (RDR) sooner than planned if it identifies widespread non-compliance or any harmful unintended consequences.
The regulator - one of two bodies set to replace the Financial Services Authority (FSA) from next month - is conducting a full-scale review of the RDR's impact next year, after which it may tweak its regulations.
But in the FCA's first business plan, published today, it revealed it may "tighten or amend" its rules before that if it considers they are not working.
It outlined how it expects its RDR Post Implementation Supervision Strategy to help reduce the risks associated with adviser firms failing to devise, disclose and deliver compliant charging and service advice models.
Part of that project will also look to root out individuals who are not suitably qualified, and those that misrepresent advised sales as non-advised sales.
Where it finds firms are failing to comply with changes brought about by RDR, it will "consider tightening or amending rules to ensure that firms deliver the outcomes we expect", it said.
However, the FCA said it appreciated the rules on retail investment advice represent a significant change to business models, and added it recognised this posed a risk to the market and to consumers.
It said it would produce good and poor practice, speeches and workshops as appropriate to guide firms through implementation.
