"We believe that the sector’s trade bodies, professional associations and standards boards are very well placed to help make sub-standard behaviour a thing of the past, through the intelligent creation and application of codes and oaths."
Keith Churchouse, director and chartered financial planner at Guildford-based Chapters Financial Limited, agreed transparency and high standards were key to a functioning market but said the proposed 'whole system' approach may not work.
He said: “Any initiative to support the raising of standards in all aspects of the UK financial services sector has to be applauded.
“Transparency is key to our future, and other recent legislative changes in the form of Mifid II highlight this further.
"[But] the ‘whole system’ approach to conduct risk and the application of structures across the whole industry may not work.
"This could import a ‘one size fits all’ approach and one of the dynamics of UK financial services is that it is so diverse. Therefore, this may not work.”