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Lenders including Abbey, BM Solutions, GMAC-RFC, Halifax and Newbury Building Society have sponsored the research and selected advisory firms they would like to take part in the project.

Advisers who have been selected complete an online questionnaire, which produces an analysis of how well the firm is responding in regards to compliance and FSA initiatives like treating customers fairly. The questionnaire is designed to ensure firms understand the finer points of FSA regulation.

Once the questionnaire has been completed the answers are evaluated against the latest compliance standards. The results are then compiled into a detailed report showing the firm's performance against each standard. The process has been described as a simulation of an FSA visit without any of the consequences.

Julie Alderson, director of MS2M, said the research would provide the mortgage industry with an accurate snapshot of smaller firms current progress with regards to compliance performance.

She said: "Advisers taking part will get a free company health check with a gap analysis report and action plan. Lenders taking part will be seen to be taking positive and proactive steps to ensure the quality of the service being provided by their intermediaries is consistent with their own standards. The wider mortgage industry will also benefit from access to this information and can act accordingly."

Clive Kornitzer, chief executive of Abbey for Intermediaries, said the project would provide a valuable insight into the current state of compliance in the industry.

He said: "Having a tool like this can be very beneficial to those intermediaries who are working hard to ensure they remain fully FSA compliant."