Responses to draft legislation aimed at addressing issues raised by the Hayne royal commission will be accepted until February 28.

Treasury unveiled two dozen financial services legislation reforms a year after Commissioner Kenneth Hayne published his final report and recommendations for improvement.

A number of the measures unveiled by Treasurer Josh Frydenberg on Friday relate to insurance. He says they enhance protections for consumers and small businesses and strengthen the role of financial regulators.

The reforms prohibit hawking of insurance products, establish an industry-wide deferred sales model for the sale of add-on insurance products, and give the regulator the power to impose a cap on commissions for add-on insurance products and insurance-like products.

Conditions on life insurers are intended to avoid misrepresentations and non-disclosure.

The reforms also restrict use of the term ‘insurer’ and ‘insurance,’ establish a compulsory scheme for checking references for prospective financial advisers and require Australian financial services licensees to investigate misconduct by advisers and remediate clients affected.

There is also a recommendation to enable industry codes of practice to be made legally enforceable and subject to civil penalties if breached. The legislation will also require entities authorised to provide personal advice to a retail client to disclose in writing to the client where they are not independent and why.

The Government has committed to action on all 76 royal commission recommendations. Of these, 54 were directed to the Government, 12 to the regulators and 10 to the financial services sector.

The draft legislation is available on the Treasury website.