National questions limits on adviser incentives

It passed its first reading yesterday and will likely force insurers to monitor their adviser distribution channels more closely.

Commerce and Consumer Affairs Minister Kris Faafoi said conflicted remuneration and incentives were one of the biggest issues driving poor outcomes for consumers in the financial sector.

The bill will allow regulations to be set to govern those.

"The bill will also create the ability to prescribe regulations relating to incentives which financial institutions and their intermediaries will be required to comply with," Faafoi said when he spoke in support of the bill.