Servicing adviser should get trail

The Government has revealed its plans to crackdown on incentives that create poor customer outcomes in financial services, including high upfront commissions and overseas trips for insurance advisers.

It follows a critical report into the sector by the Financial Markets Authority and Reserve Bank.

But adviser Colin Just said while advisers were being encouraged to churn clients, it was not simply because they were paid a big commission for issuing new policies.

He advisers were incentivised to move any new client who came to them already holding an insurance policy.