It feels like we are at a real crossroad which will determine the future of particularly the smaller, independent (not that we are allowed to use that word) financial advice firms.

We have a Parliamentary Select Committee considering the Financial Services Legislation Amendment Bill (FSLAB) and the Code Working Group (CWG) is working on a new set of rules all advisers will have to follow.

On our shores it's easy to see the level of concern by the number of stories and comments being made on Good Returns. There are a group of advisers who understand the implications of FSLAB and CWG and are working to get a workable solution.

Unfortunately the two associations, IFA and PAA, are pretty quiet on the changes. While they are doing some work behind the scenes they are vocally, championing what they are doing for advisers. 

We should give thanks to the Australian government and its Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. This enquiry couldn't have come at a better time.

In its first two weeks of hearings the flawed vertically integrated marketing model used by banks and big companies like AMP have been thrown into sharp relief.

Many in Australia said an enquiry wasn't needed. They have been surprised by what has been uncovered so far and have now done a u-turn.

This weekend we are hearing the same thing in New Zealand from people like the new Reserve Bank governor Adrian Orr, the Minister of Commerce Kris Faafoi and even the FMA. I'm not necessarily calling for a similar enquiry, but it is very hard to believe that these predominately Australian-owned organisations don't have some of the same issues as their parent companies across the Tasman.

The clear message which really needs to get through to members of the Select Committee reviewing FSLAB is that the new act, needs to address the issue of sales versus advice, and the threats that VIOs potentially present to consumers.

As the minister, Kris Faafoi, said on Good Returns TV all these changes are about protecting consumers.

One other change that is absolutely essential is that the minister must change the composition of the CWG. It has no practicing financial advisers, it is dominated by VIO representatives and there is no one of coal face experience in mortgage broking of advising on life insurance.

Formal complaints have been made to the minister and he must act. Before the CWG starts considering the submissions it is currently collecting.