That is among the recommendations included in the Commerce Committee inquiry report into finance company failures.

"We recommend to the Government that it investigate the possibility of banning conflicted remuneration structures in the provision of financial advice, including consultation with the Australian authorities on the model proposed in that country," the report says.

The possibility of a commission ban was welcomed by financial adviser and author Martin Hawes, who believes the idea is beginning to gain momentum.

"Once you get one or two or three countries doing this, then I think it will sweep around the place pretty fast," he said.

"It's a conflicted business model, and I don't think financial advisory will become a proper profession, well regarded by the public, until there is a different remuneration model."

Institute of Financial Advisers (IFA) president Nigel Tate says transparency is the main issue.

"The official position of the Institute at the moment is we don't mind what the structure the clients opt for - whether it's commission or fee - as long as there's clear and concise and clearly understood disclosure, so that there's an informed decision made by the client," he said.

The report concedes new adviser regulations to disclose their remuneration and relationships are welcome, and that there are arguments to suggest investors are often reluctant to pay fees, however, "we retain strong reservations about advisers' receiving any form of remuneration from those whose products they recommend."

The report also recommends the Government undertake financial literacy efforts to make the public aware of the distinction between "independent" advisers and those who receive remuneration from providers of investment products, "to encourage the public to opt for independent advice."

"It could prove unnecessary to ban commissions if their use diminished as the public learned the value of paying for independent advice," the report said.

While generally positive about new regulations, the report also says it remains to be seen whether they will result in  "better trained and more professional financial advisers, who succeed in regaining the public's confidence."

"We expect the FMA to help this happen by monitoring the industry assiduously."