The framework for an advice profession has been clearly established by the regulator and professional bodies, it is now up to advisers to make the leap, Rory Percival told delegates.
Speaking at the Professional Finance Society (PFS) Conference in Birmingham he said the shift from industry to profession was making progress but there were several areas for improvement - including a more advice-focused approach from firms.
Percival said the advice profession's reputation would improve if there were fewer enforcement cases from the Financial Conduct Authority. He added when enforcement action is needed it should be focused on "bad apples" with in businesses, not down to firm-wide practices.
He also told delegates there needed to be fewer skilled person reports and variations of permissions after regulatory intervention.
We have seen good progress from some quarters, we feel the industry is broadly on the right track but there are some areas where there are still some way to go
On a broader point, he added: "Clearly, an improvement in the quality of advice would demonstrate improving professionalism, where the focus of the firm is on advice it is the advice that is being sold, not the product.
"If that is the case then churning and shoehorning into centralised investment propositions should reduce.
"Perhaps you could say the reduction in the use of adviser charging facilitation would be an indicator that firms feel more comfortable about charging for their advice directly."
He also said continued qualifications would indicate more advanced professionalism.
"As I have said the regulator and professional body framework is in place for this transition to happen. We at the FCA want to encourage and support that transition. We have seen good progress from some quarters, we feel the industry is broadly on the right track but there are some areas where there are still some way to go. I think this will take quite some time.
"We would like to encourage you to think about what professionalism really means and how to put it into practice in your firms.
"Clearly there are benefits to consumers with this more towards professionalism, but there are benefits to firms too. There is better engagement with consumers, better demand for your services, greater profitability and a more rewarding working environment."
