Financial Markets Authority data from this year's information returns shows 43% of advisers receive commission from product providers, down from 45% in 2014.

Just 33% receive a fixed fee or hourly rate from their customers, down from 36% in 2014.

AFAs also said they received incentives such as entertainment, business coaching, travel and vouchers from providers.

Twelve per cent of advisers generated more than 50% of their commission or production bonuses from investment products of one provider.

Former Financial Services Council chief executive Peter Neilson said it was a problem for the industry if it wanted to be seen as a profession.

He said the advice given based on a client's circumstances had to be distinct from the decisions about what they ended up buying.

With current commissions structures, he said people paid for advice over a long period of time and ended up shelling out more than they needed to. “We want to get to the situation where they see value and pay upfront.”

If advisers could show people the return they could offer over their investing lifetimes, rather than year by year, they might be more willing to pay, he said. "If you could sit down with a smart calculator and help people so their financial assets were aligned with what they want in life, they could get huge value out of that conversation."

That would be more appealing to young people as a career because it would not rely so much on existing relationships, he said. "I am personally optimistic about financial advice but we have got to find a way to break the link between products and advice."

He suggested a solution would be for KiwiSaver members to be allowed to withdraw money to pay for advice at key points in their lives, such as when they started work, when they wanted to buy a house and when they were near retirement.

David Boyle, of the Commission for Financial Capability, which is currently working on a review of retirement income policy, including KiwiSaver, said it was an interesting suggestion but potentially problematic.

"It could also open up a can of worms that might lead to other requests for access of funds being, further education for example. I think it could dilute the real purpose of the savings which is around building funds that will create an income for members non-working years."

Neilson said the arrival of new low-cost KiwiSaver provider Simplicity could put pressure on other participants across the industry to cut fees. That could reduce their ability to pay commission.