Earlier in the week Australia announced it will ban the use of commissions on investment products and soon after the Investment Savings and Insurance Association (ISI) announced plans to implement a voluntary policy to discontinue the payment of commissions on investment products, including KiwiSaver.

PAA chairman Peter Leitch says there are cases where commissions have affected advice.

"But let's be clear, this has also occurred where people have paid a fee and where any commission may have been rebated.

"Advisers are seemingly the only ones in the gun sights at the moment. This is wrong."

He says the changes to the industry that are being affected with the regulation will surely provide the structure to ensure that some of the negative events that have occurred in the past, will be harder to re-occur in the future.

Leitch believes the ISI's announcement to phase out commissions casts some doubt for advisers.

"Financial advisers are spending thousands of dollars getting prepared to become authorised financial advisers (AFAs) and they need support and encouragement for what they provide, rather than the sense that if you get paid a commission for advice, it's not right.

"We need to make sure those advisers committed to the new regime are not seen as second class citizens if they are paid on a commission basis. There is potential for a lack of confidence from the public in advisers."

He believes the professional bodies, the ISI members and other agencies all have to tackle the regulatory changes together and he wants to make sure they are enhancing confidence in financial advisers rather than continually finding angles to undermine the advice that's out there at the moment. 

Leitch says "let's reflect on how many people retire today with financial security due to the advice that they have received from their adviser.

"Let's also reflect on the fact that due to advice, many people's lives which have been affected by death, disability or illness, have financial security due to having appropriate levels of risk protection in place.

"Let's reflect on people who owe hundreds of thousands of dollars and who are in a mortgage structure that is suited specifically to their circumstances. 

"We all need to be standing up and supporting the role of advice and the adviser - New Zealand is a better place because we have financial advisers."