Adam Phillips told the Financial Times that the incoming Financial Conduct Authority (FCA) – one of the FSA’s replacement regulatory bodies – should have the power to write rules to enforce the duty.
Phillips is due to speak today during a Joint Committee hearing on the draft Financial Services Bill.
He said the FSA’s existing TCF principles failed to provide enough protection for consumers.
He told the FT the problem was acute for customers with lower incomes who could not afford to pay for independent advice, which he said was more tightly regulated.
“We should get the industry to look at itself and say ‘Am I living up to my duty to my customers?’ It will drive and encourage better behaviour,” Phillips said.
US regulators are considering imposing a fiduciary duty on brokers.
The Joint Committee has been appointed to begin work on scrutinising the draft Financial Services Bill, which will split the FSA and establish the FCA and Prudential Regulatory Authority.
Other witnesses appearing in the same session will include AIFA director general Stephen Gay, Institute of Financial Planning CEO Nick Cann and Sir Anthony Holland, the Complaints Commissioner.