Australia bans commissioned sales - MoneySense

Australia bans commissioned sales

Getting incentives for selling financial products is called a conflict of interest.


Australia is following the U.K. in announcing a ban on commissioned sales of financial products. Bloomberg Businessweek reports that the rule will come into effect in July 2012 and is meant to product investors from being sold the wrong products due to a conflict of interest of their advisor. However, in Canada, commissioned sales remain the dominant mode of selling financial products.