Speaking at the Tax Incentivised Savings Association annual conference in London, the financial secretary to the Treasury, said the FCA would have more powers than the current Financial Services Authority.

The FCA would have the power to ban products temporarily with immediate effect.

Mr Hoban hopes these temporary bans will mean the regulator can intervene earlier.

He said: “It would be far better if the regulator had the power to tackle product intervention earlier, whether that’s by restricting the product or banning how it is sold altogether.”

His comments follow on from those from FSA chairman Lord Turner who said the FCA would need the power to act early to prevent consumer detriment including by banning products.

Mr Hoban also said that there was a there was a proportion of the population who were “not necessarily attractive” to advisers.

He said: “There is a group of people, not necessarily the high net worth group of people, who are earning on average to above average income but who have not prepared for their future or a rainy day fund.

“These people are not necessarily attractive to advisers, they’re a middle ground.”

He said that this group of people would be the target for the Money Advice Service.

Mr Hoban set up the Money Advice Service earlier this year as a free service to help people manage their money better.