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Key points made in the interim report included stopping providers from setting commission, splitting sales and advice channels, and recommending all advisers work on a whole-of-market basis, while stressing simplification within the changes.

The regulator said it would be carrying out further discussions over customer-agreed remuneration and whether a principles-based approach could be used to regulate this payment method.

In particular, Aifa welcomed the suggestion that advice and sales for IFAs be completely split, and the regulator's call for a raising of the standards for those who want to stay part of the advice category.

However, it warned there was a long way to go before the RDR could be successful.

Chris Cummings, director general of Aifa, said: "We still have a long way to go in the RDR process, but the interim proposals lay the way for a bright future for IFAs who are prepared to adopt the higher standards and provide a professional service."

He said he was pleased the FSA had taken on board arguments made by the association in its initial response.

"A key component was direct polling of consumer views, which found that 75 per cent of consumers believe that independence means whole of market," Mr Cummings said.

"The call for higher adviser qualifications is also to be welcomed. It is in everyone’s interest for the adviser community to have a common set of standards."

The report was also welcomed by other industry members, including product providers such as Fidelity International, Standard Life and Skandia.

Peter Hicks, head of IFA channel at Fidelity, said: "We now urge the regulator to hasten implementation – further delay is not only of detriment to the industry, but more importantly to the consumer."