The Royal Institution of Chartered Surveyors (RICS) is seeking to regulate chartered surveyors who provide insurance for their clients, as an alternative to FSA regulation.
RICS said it was holding discussions with the government over the proposals.
RICS chief executive Louis Armstrong said: “We are in discussions with the Treasury and there are a few chinks of light.
"They want to fulfil the Government's ‘light touch' pledge on regulation, while RICS wants to avoid tying the property and construction sectors up in red tape, hurting small businesses and reducing choice and competition.
"These two aims should be compatible and we will continue to explore the regulatory alternatives to the current FSA approach.”
He added: “RICS members must still register with the FSA if they wish to offer insurance services next year. We cannot at this stage depend on agreeing an alternative approach. But we will continue to fight hard to protect the consumer and for common sense regulation.”
RICS, which represents 85,000 chartered surveyors in the UK, said it believes the regulation is unnecessary and bad for business.
It said the rules will make a mockery of the government's pledge to regulate business with a ‘light touch'.
The FSA has been woefully slow in producing guidance for the property sector, largely because it is trying to regulate an area it does not comprehend, concluded RICS.
