FMA head of primary regulatory operations Sue Brown said the issue came up at a recent conference, where she was asked about use of the various designations and terms by advisers in promotional material.

"I cautioned against use of the initials by advisers to indicate they have a professional qualification.  You can't say 'Joe Bloggs, RFA' as if it's a professional qualification or means you're a member of a professional body," she said.

"It means you've made what are a fairly low level of requirements to get there, meaning you're not disentitled by a conviction or by any of the restrictions.

"You've simply added yourself to a list - it doesn't mean you've passed any exams or joined an association."

AFAs and other title-holders such as CFAs are free to use these initials in their advertising as they actually signify some sort of qualification.

Brown said the situation in the advice industry was different to other professions such as medicine and law, where qualifications are required before you can practise.

However, she said advisers are allowed to say they are registered, provided they word it in a way that doesn't mislead consumers.

"You can say, 'adviser who has registered' without implying it's a qualification."

Brown said there were a number of purposes to the financial service providers register: "At one level enables the regulator to know how many people are operating in the market."