Commissions in the financial services industry must be banned, says a former FPA chairman.

John Hewison has urged both the FPA and ASIC to get rid of commissions to stop financial planners giving advice that may be tainted by product bias and conflicts of interest.

“The reality is that the regulator won’t take on the ‘big end of town’ so the FPA needs to step up and take a firm stance as the rightful guardian of the profession and surrogate protector of the consumer,” he said.

FPA CEO Jo-Anne Bloch says the main issue is not the way in which planners are remunerated but that they are providing consumers with professional and quality advice.