Australia’s largest financial planning firms are moving swiftly to abolish commission payments ahead of a 2012 Federal Government deadline.

More than 5300 financial planners at AMP, MLC/National Australia Bank and Axa will junk commission fees from July 1 in direct response to the Government’s Future of Financial Advice package, which recommends a ban on conflicted remuneration structures, including commissions and volume-based payments.

Among the big three, MLC and Axa are the most advanced in their plans, having begun prospective switchovers several years ago. AMP launched an evaluation of payment models in November.

An ANZ spokesman told insuranceNEWS.com.au it offers clients the choice between commission and service-based payments.

Acting Financial Planning Association (FPA) CEO Deen Sanders has described the Government’s reforms as “the most significant changes to financial planning since the Financial Services Reform Act”. The FPA has imposed its own ban on commissions for members by 2012.

The Federal Government has also hinted its ban on commissions may extend to risk products, particularly life insurance, with wealth management firm Hewison and Associates announcing last month it would no longer take commissions on risk insurance.