The regulator has issued finalised guidance this week following consultation guidance released last September.

It confirms that advisers offering simplified advice to consumers will still have to be qualified to Level 4 and operate adviser charging rules, the same as advisers offering full advice.

The suitability standards will be the same as for all other forms of retail investment advice.

The FSA said it had considered industry viewpoints but felt there was a risk of consumer detriment through mis-selling and poor advice if advisers were not suitably trained.

The report reads: “We have not changed our overall position as a result of these considerations - simplified advice needs to comply with the same regulatory requirements as full advice.”

Critics question if firms will be willing to offer simplified advice if they are qualified enough to offer full advice.

Under the new guidelines, consumers should be given details of the charging process before any recommendations are made.

Products should not be recommended if the consumer would be better off repaying debt or does not have access to emergency savings.

If the consumer is unclear or unsuited for the products on offer, they should exit the process. To read the full guidance click here.