Commission ban “one private members Bill away”

Speaking at the Life Brokers Association (LBA) conference in Wellington, Neilson said that the ISI was not working towards a ban on commission.

However he said in the wake of the commission ban in Australia greater consumer and political pressure will be brought to bear, particularly on upfront commissions.

He said that pressure would result in a move towards trail commissions over upfront commission payments to advisers.

While he acknowledged that the situation in Australia differs from New Zealand, Neilsen said commission is "an issue we have to address" and that the ISI was looking at the matter.