The FSA has released plans to abolish the polarisation regime for packaged product advisers.

Publishing consultation paper CP166, the FSA called for firms to be given the option of offering customers more than one product.

The proposals also provide for advisers to be given the chance to remain independent, provided they advise across the market.

FSA retail projects head David Severn said: "The new regime is aimed at increasing choice for the vast majority of consumers for whom the polarisation regime we inherited has denied such choice.

"It takes takes nothing away from those who already have access to independent advice. Polarisation has failed to deliver the benefits that were hoped for when it was introduced.

"Our proposals will most benefit the average consumer whose financial needs do not lead them to consult independent financial advisers, but who nonetheless deserve better access to advice on suitable products and greater choice."

An FSA statement said the removal of the polarisation restrictions is not likely to take effect until late 2003.

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