Pipeline of new advisers could be stopped

Russell Hutchinson

The government has said it would get rid of incentive structures in insurance and banking that drove poor customer outcomes.

Upfront commissions and overseas trips are top of the list.

Insurance commentator Russell Hutchinson said many advisers would feel they had been "put through the wringer", with Financial Markets Authority research last year into churn and now its report, with the Reserve Bank, into the sector.

It was not long ago that officials had defended the commission model as the Financial Services Legislation Amendment Bill was being developed. "Now commission is back in focus again."