Senate inquiry examines financial advice

A Senate committee will quiz the securities watchdog on how to improve the quality of financial advice.

Australian Securities and Investments Commission head Greg Tanzer will appear at an inquiry hearing in Sydney on Tuesday.

ASIC says in its submission it wants to see a financial advice sector that delivers high-quality advice in which consumers and investors can have trust and confidence.

The key is turning the sector from one that is sales-driven to a professional services industry.

Christopher Kelaher, the managing director of financial services firm IOOF, will also appear.

Shares in IOOF took a hit after it announced plans for an independent review of its operations amid claims of staff misconduct.

IOOF has hired accounting giant PwC to review its regulatory breach reporting policy and procedures within the firm's research division.

The company insists it is committed to ensuring it meets the highest standards of corporate governance and compliance.