"Australian investors would be better protected in a regulatory regime that oversees two distinct models of advice businesses, each categorised to reflect their operating structure and providing a meaningful descriptor for investors," MLC said in an official statement.

Aside from the delineation, the company suggests that new financial planners be required to meet minimum qualifications, that is, at least a year of related industry experience and an advanced diploma on financial services. All financial advice fees should also be tax deductible and without caps.

"In an ever-changing marketplace, the regulatory framework cannot remain static and must account for developments, positive and negative, particularly in the areas of product design and distribution. All of the recommendations have a common objective to place the customer at the centre of the investment experience," the company said.