The insurer has said it will pay override commission to financial advice providers in the new regime.

The structure will be a 100% base commission, a bonus of between 80% and 120% and an override of 30%, taking the combined total to maximum commission of 256%.

Managing director Naomi Ballantyne rejected the suggestion that was a commission increase for advisers that could run counter to the Government’s stated aims of removing conflicts in remuneration structures.

“It’s the same amount of commission we have always paid but now scaled by advice quality and all paid to the entity with the advice liability. This is in keeping with the commentary from the regulator.

“The loss of commission to dealer groups that are not FAPs for their members is causing a lot of the misinformation being spread. Other providers still paying commission over-riders to dealer groups may also be concerned about the impact to their businesses of our changes.”

Faafoi said he was aware of the move.

“As I have outlined in the past, I am concerned that the way incentives are structured can lead to poor outcomes for consumers if those incentives mean sales are prioritised over good customer outcomes.

“Remuneration that involves high upfront commissions, which are volume-based, are one of the biggest issues driving poor outcomes for customers in the financial sector.

“I encourage the industry to continue exploring ways to link incentives to good customer outcomes.

“In the case of the Partners Life proposal. I, and officials, will watch to see how it works in practice to see if it successfully links incentives to good customer outcomes, or whether it results in high upfront commissions.”

Financial Markets Authority spokesman Andrew Park said he did not have enough detail to comment fully.

“We have made our concerns and expectations clear about the issues involved with the conflicts of interest that are driven by high upfront commissions and incentive structures focused on sales volumes.

“We welcome structures that are designed to recognise and prioritise good standards of customer care. We will continue to engage with the industry to see how these initiatives may work in practice.”