The federal government is continuing its shake-up of the financial services industry, with a new measure to impose a "best interests" duty on advisers.
The legislation, which was introduced today, also stops advisers taking payments where there's a potential conflict of interest.
Assistant Treasurer Bill Shorten said these were the key measures in the second tranche of reforms to the industry.
Mr Shorten said that imposing a statutory best interests duty meant advisers had to put their clients' interests ahead of their own.
He said that didn't mean advisers would be punished if, with the benefit of hindsight, their advice didn't prove to be perfect.
"The duty requires the providers of the advice to take steps that would be reasonably regarded as being in the best interests of the client, given the client's relevant circumstances," he said.
"For the majority of advisers, this merely codifies how they already go about their business in dealing with clients."
The second measure bans advisers from receiving "conflicted remuneration", including commissions from product issuers.
"It is absolutely crucial to the integrity of the advice industry - or any industry involving a high degree of trust and responsibility - that the consumer can be confident that the adviser is working for them," Mr Shorten said.
Debate on the Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011 was adjourned.