This compared to almost 2,400 new advisers who joined in 2018 at the peak of the industry, prior to the introduction of the FASEA standards.

The problem of new entrants being discouraged to join was also exacerbated by the restrictive professional year standard, with just 83 advisers having finished their professional year since the FASEA standards began, Lifespan compliance and general manager Eugene Serravalle said.

“The FASEA website says they currently have 400 advisers that are registered and doing their professional year, so there may be a lot who are not on the adviser register yet, but that’s still only 400 compared to the thousands that are leaving,” Mr Serravalle said.

With adviser numbers having reached around 20,500 at the end of 2020 – down from 28,000 at the industry’s peak – and likely to decline by another 3,000 to 4,000 in 2021, it was possible total numbers could reach into the single figures by the time the final FASEA deadline in 2026 rolled around, Mr Serravalle said.

“Adviser Ratings’ prediction was 13,000 advisers at the end of 2023 and it looks like we’re on track to hit that. If that trend continues and you hit that next deadline in 2026, there will be some more advisers leaving and we could be at less than 10,000 advisers,” he said.

The large number of advisers still needing to pass the FASEA exam in the next seven months was still a major concern, with Adviser Ratings’ data as of March 2021 indicating that just 39 per cent of advisers from large privately owned dealer groups had so far passed the exam.

Aligned and institutional groups were faring somewhat better, with 60 per cent of large aligned groups’ advisers having passed, and 64 per cent of industry fund advisers passing the exam as of March.

While disappointing for the industry, Mr Serravalle said the current market dynamics represented “a great opportunity” for the advisers who would remain post-2026.

“There are no more bank advisers so if a client walks into a bank, what happens? Maybe you want to form a relationship with your local branch manager,” he said.

“The adviser exodus means there’s less advisers to service clients, so there are more clients out there to be serviced. Talk to your centres of influence, get your marketing in place, whether it be social, websites, community groups, schools – get your name out there and let them know you’re here to help.”