Commenting on the paper, Paul Smee, director general of AIFA, said: "We do not intend to re-fight old battles about the benefits of the previous regime. But we will mark its passing by reaffirming that it served consumers well and there will be times in the future when the regulator will come to regret its demise as much as the IFA community.
"However, we are grateful for the FSA's willingness to listen to our arguments and acknowledge that the withdrawal of their proposal for a defined payment system will allow many more advisers to retain their independence.
"We have high hopes for the Menu and look forward to the publication of the FSA's proposals. Our overall impression is that, as a result of the Menu and CP166, firms can at least now choose the structure and status which best suits their operation rather than be obliged to go down a particular route purely for regulatory reasons. This is a positive development which places responsibility for shaping the market where it belongs, with the industry, not with the regulator."
