Results published yesterday showed a quarter of advice received by consumers in retail banks and building societies was poor. This included 11 per cent where the advice given was unsuitable for the consumer.
Adam Philips, chair of the panel, said: "We would have expected much better results given the FSA's recent focus on investment advice. These findings are very disappointing. They do however highlight the importance of mystery shopping.
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Consumers should be entitled to expect more from financial institutions."
He said stronger action was needed by the FSA to force firms to treat their customers fairly. This would include naming the offending institutions and tougher sanctions for breaches of regulation.
One firm, believed to be high street bank Santander, which gave poor advice has already been referred for enforcement action by the FSA.
Mr Phillips said: "The anonymity of these institutions means that consumers are kept in the dark. People should be aware of wrongful behaviour and given the opportunity to take their business elsewhere."

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