JPM Asset Management head of UK funds Jasper Berens said regulation was moving at such a pace worldwide that a blanket ban seemed inevitable.

“Regulators around the world are talking to each other and as they talk to each other more, this kind of stuff is becoming more important,” he said.

New Zealand adviser Simon Hassan said he agreed commission on investment would soon be a thing of the past. “Certainly for non-aligned advisers,” he said. “It seems a key way to eliminate a significant source of conflicts of interest.”

Fred Dodds, chief executive of the Institute of Financial advisers, said there was very little commission left on new investment products in New Zealand. KiwiSaver would offer small upfront commission and trail of about 0.25% he said and the entry fees in retail products was well displayed.

“The main income in New Zealand investment is AUM fees or financial planning monitoring fees - again, all transparent.”

But he said life insurance commissions were something different and not banned anywhere yet.

IFA president Michael Dowling said the introduction of the Financial Markets Conduct Act was intended to flush out all hidden fees, not just commissions.

“It will be interesting to see who chooses to close their fund to new business, restructure their fees or move funds to new products. Only by comparing them before and after December 1 will you be able to see the effect of the change. I believe we are on the leading edge of the evolution that is referred to.”

But Norman Stacey, of Diversified, said the idea was “errant nonsense”.

“Provided they are disclosed, commissions are a wholesome commercial and perfectly legitimate method of payment for services. Government bonds are sold at discount. Realtors, auctioneers, share-brokers, travel agents, clerk-of-works and salespersons are paid by commission.  Dammit, the church used to command tithes. Are we further going to re-name the US Securities and Exchange Commission? Why on earth should financial advisers be any less a legitimate business?”

He said fund managers were remunerated by commission; "they are paid a percentage of FUM as fees – and the fishier ones even a percentage of equity gains in excess of cash rates. Surely that rort is more worthy of regulator’s attention than financial advisers striving to do the best for clients affordably.”