A federal government-backed body has thrown its weight behind a plan for a national financial advice rating system for planning firms, as the sector attempts to reverse the destruction of trust brought about by a raft of bruising royal commission revelations.

Consumer group Adviser Ratings on Tuesday unveiled a proposal for a "quality of financial advice rating system" which would rank more than 1800 financial advice licensees using metrics such as quality of internal governance, and whether its authorised representatives have ever been banned.