ASIC's campaign to eliminate egregious commission structures in the auto finance sector has begun to yield results, with ANZ overhauling the terms of its finance arrangements with car dealers.The consumer watchdog introduced new regulations in September that prohibit lenders from paying controversial incentives to car finance brokers, known in the industry as "flex commissions".A flex commission allows car dealers to set the interest rate on car loans.They are controversial because lenders such as ANZ previously boosted the size of commissions paid to dealers in line with higher rates they set.ASIC decided to ban flex commissions because it found they acted as an incentive to saddle consumers with excessive interest rates.Lenders and dealerships have been given until November 2018 to abandon the practice.In a circular issued to finance brokers and car dealers on Monday, ANZ said it was abolishing flex commissions from 1 December.Dealers will continue to receive payments for car loans funded by the bank but these will be linked to the size of loans rather than the interest rate set by the dealer.Under the new commission structure, ANZ will pay A$1000 to dealers who originate loans on new motor vehicle purchases valued under $25,000. The maximum commission payable to dealers will be $2000, which will apply on loans above $50,000.The ban is expected to trigger a wave of consolidation in the car finance industry, which remains one of the most fragmented credit markets in the country because of the anti-competitive practices spawned for decades by dealers and lenders.