A major overhaul of the financial advice industry will ensure investors and businesses have access to clearly costed and expert advice, according to independent financial advisors Brunning Newman Houghton (BNH).

The reforms outlined by the Financial Services Authority include scrapping commission-based payments for investment and pension advice from New Year's Day, 2013, with all advice paid for by fees.

There is also a higher mandatory minimum professional qualification standard - and these changes have seen many financial advisors leave the profession, with more expected to follow.

Several high street banks and building societies have chosen not to adapt.

Barclays has closed its financial planning arm, while RBS and HSBC have announced 1,000 redundancies between them.

The minimum qualification will be raised from O-Level or GCSE to degree equivalent.

David Brunning, managing director of BNH based in Tunbridge Wells, said: "The FSA's reforms will lead to an increase in the knowledge and professionalism of advisers and product providers, making the cost of advice clear and the businesses involved in financial advice more robust.

"The changes laid out in the Retail Distribution Reform will make what has often been seen as a complex process with hidden costs suddenly more easily accessible and transparent – a move which will undoubtedly help anyone in need of financial advice, from private investors to business leaders.

"The FSA is now championing what we at BNH have always believed in: providing truly independent, expert financial advice and support with a clear set of costs. We are extremely well-placed to continue this practice in the coming years."

For more information, visit www.bnhl.co.uk.