The poll showed that 19% of respondents believe many brokers will simply leave the industry before taking the test. Concerns that low standards could trip many up mean just over a quarter thought 10% to 20% would not pass the test, while only 10% said less than one in ten would fail.
Meanwhile, 17% said they were unaware of the fit and proper test and what it involves.
Industry figures suggest that credit problems will be the biggest obstacle for many as average earnings collapsed over the past three years. However, the FSA said that no one issue will result in automatic failure.
Advisers will be individually assessed on issues including civil or criminal convictions, credit histories, including issues like bankruptcy or CCJs with leniency offered if factors are out of the individual’s control, said the FSA.
“This is not about making things more onerous for people, but about the FSA being able to sanction individuals who break the rules and stopping unsuitable people,” added the regulator.
Dev Malle, sales and marketing director of Personal Touch Financial Services, said: “Adviser numbers will reduce by around 15% because firms apply different levels of latitude and robustness to their own fitness and propriety tests. Companies are already training people to fill the gap.”
Jonathan Cornell, communications director at First Action Finance, said: “The FSA has not given much guidance on what will prohibit advisers from passing so people naturally think the worst.
However, honest and truthful disclosure is incredibly important, as advisers who are discovered lying to the regulator will fail.”
