Speaking at a conference, Linda Woodall, FSA head of investment department, said firms should stop putting off the task.

She said that moving to an adviser charging proposition was the most challenging element of the RDR.

Following checks on firms by the FSA, Ms Woodall said: “We have seen good progress made by firms, but we have also encountered some who haven’t even started, which is a big concern to us.”

“We have spoken to firms who have moved to an adviser charging proposition already and they have told us that it does not happen overnight. It takes time to put together a proposal, communicate the change to clients and test it.”

The time it would take to adapt to the proposition depended on what that firm felt was best was its clients, she said.

Some firms would need to adopt a full advice service whereas others would only need a transactional service.

The first step was for firms to speak to their clients and explain the new ruling and how much they would be willing to pay.

“This decision about what services you offer should boil down to what’s best for your clients-not what’s best for you. If it works for your clients, it should, in turn also work for you.”

She ended by telling advisers: “Please do not take these changes lightly, putting off this work involves a huge risk.”