In most industries where there is a large investment on a salesperson’s promise, involving securities etc, there is some form of regulation...
I fear the industry is too small, and the costs of regulation too high for government to care: indeed the appalling quality of the CAA's current regulation would in my mind be a fundamental argument against it.
However, you are right - the lack of information available to people is disturbing, particularly disturbing are those who do not bother to read alternative views. Whatever the regulations, they will not safeguard against those people losing their shirts.
What meaningful regulation there might be is in application of available consumer protection laws, many of which I believe are regularly flouted - few are willing to pursue FTOs when they have to invest time and expense in finding a job.
In short, not to say that it is impossible, but rather I am not sure how matters could be any different from at present...