NZ advisers hit out at Royal Commission

The Australian Treasury supports Kenneth Hayne's recommendation for a ban on trail commission, while it will explore banning other forms of sales commission. The government will also look into the feasibility of a fee-for-service model paid for by borrowers.

The FMA says "it is currently reviewing the report and considering its implications for New Zealand". The New Zealand government called the report "concerning" but pointed to several changes underway to protect consumer interests here.

New Zealand advisers have criticised the recommendations from the Haynes report, but have called for calm in the industry here as it awaits the fallout.

John Bolton CEO of Squirrel Mortgages, described the report as a "massive backwards step" for advisers and a "witch hunt". He said: "I was disappointed that they jumped into commercial relationships, when their evidence was anecdotal. I didn't see any proper analysis. Trail sets up an [adviser] business to be customer focused, rather than being focused purely on sales."