New rules, aimed at eradicating the long-standing practice, are being imposed by the Financial Services Authority (FSA) from now, reports the BBC.
The aim is to stop policies, such as private pensions and investments, being mis-sold by sales staff, motivated by commission payments.
Instead, customers must be quoted up-front fees, and be told about charges.
Sales staff or financial advisers will also have to state if they are really independent, or restricted to just selling the policies of particular financial groups.
The reforms form part of a series of changes in the financial services industry called the Retail Distribution Review and which were first proposed by the FSA back in early 2010.
Linda Woodall at the FSA said: "The changes will improve customer confidence - we want people to feel that they are getting a service from their financial adviser that is relevant to their circumstances and in their best interests.
"These changes are about making the cost of advice clearer, where else would you buy something without knowing in advance how much it costs?
"Customers will now know how much advice is costing them, the service that they are receiving and be reassured that their adviser is qualified."
The chages should ensure that independent financial advisers no longer receive payment for their advice by taking a regular cut of their clients funds via commission payments, something the clients may not be aware of at all.
The new policy will apply to the sale of investments such as pensions, annuities and unit trusts, but not to some mortgages and insurance policies.
Commission-driven sales are thought to have been at the heart of the huge mis-selling scandals of the past few decades, affecting the sale of endowment policies, personal pensions and most recently payment protection insurance (PPI).
Even apart from those scandals, the FSA estimated in 2010 that mis-selling in general was costing UK financial consumers about half a billion pounds a year.