Australia is to ban financial advisers from accepting commission payments on products they sell from mid-2011 to help protect investors from conflicts of interest.
The lobby group for the industry in New Zealand, the Investment Savings and Insurance Association, says its members will follow suit voluntarily.
The association says it proposes ending commissions on any investment product promoted by its members, which includes banks and investment houses.
However, it could be up to 18 months before the changes are implemented.
Under the proposed changes, consumers will directly negotiate a fee with their financial adviser, which the association says ensures that they are fully aware of the cost and how that advice will be paid for.
The commission system has been criticised for financial advisers pushing investors into investments such as Bridgecorp.
Meanwhile, the Australian Securities and Investments Commission will also be given more power to ban unscrupulous operators.
