The UK's Financial Services Authority (FSA) has told investment adviser firms that many of them are not giving customers the right information about their services at the right time.

Recent research conducted by the FSA found that over half of firms surveyed are failing to follow its new rules on disclosure of firm status and commission charges, introduced under depolarization last year.

Clive Briault, MD of retail markets at the FSA, said: FSA rules are not optional and these results are very disappointing. These firms are not new to regulation and senior management should be well aware of their responsibilities for compliance with our rules. Those firms that are not complying must review their procedures as a matter of urgency and make the necessary changes.

He continued, Firms need to comply with our rules to ensure that consumers obtain the key information when they need it to make an informed choice.

The FSA says it will continue to work closely with firms, trade associations and other stakeholders to communicate its findings and to clarify the application of its rules where it has identified common errors.

The regulator also said it would be gathering additional information from firms and conducting a further round of mystery shopping later in the year to make sure that firms have improved their procedures.