The Federal Government is planning a major shakeup of the Future of Financial Advice rules introduced by Labor.

Many of the changes would overturn reforms introduced in the wake of the Storm Financial collapse, in which some investors lost their life savings because of conflicted financial advice.

One of the proposed changes would water down a key provision to obliges financial advisors to always act in the best interests of their clients.

The Assistant Treasurer Arthur Sinodinos says that is just one area where Labor's reforms went too far.