David Boyle, investor education group manager at the Commission for Financial Capability has returned from a forum in Australia where the country’s industry challenges were discussed.

He said Australia was dealing with the question of how quality advice could be delivered in a cost effective way that was transparent and appropriate for consumers. “I hope we can learn from their challenges.”

The Australian industry is reeling after revelations of substandard advice and mis-selling costing consumers billions in losses.

There have been a number of reports recommending widespread changes, including to commission structures, bank funding, superannuation scheme fees and retirees' access to their super lump sums.

Boyle said New Zealand would be able to be more proactive than Australia had been. It has been more than two decades since that country introduced compulsory super.

The Financial Advisers Act review, beginning this year, was an opportunity to join the dots in New Zealand, he said. “There are some good lessons we can learn from Australia in what not to do. Sometimes that’s a great place to start.”

New Zealand financial advisers were operating in an environment of clean regulation and products, he said. “It’s not too complicated. We should put regulation in where there is a better outcome for the consumer. You don’t want to be in the position where you change the environment and politicians make it more complicated for people to understand what to do. In Australia, it’s bloody complicated.”

Financial advisers in Australia have felt heat as greater regulation is proposed for them.

A register has been introduced and commission is also under scrutiny: Australian Prudential Regulation Authority member John Trowbridge has suggested advisers who sell life insurance should only be able to earn $1200 in upfront commissions. Regulator ASIC found one in three clients focused more on commission than servicing their clients.

Boyle said New Zealand advisers did not need to be worried by what was happening to their counterparts across the Tasman.

"There it does highlight a bit of a systemic issue. I don’t think we have that in New Zealand yet. The Financial Advisers Act review should mean a good robust discussion and it’s a good time to do that.”