However, Mr Brown added that those in the industry also have the opportunity to “step up”.

“There’s potentially two million customers from banks that no longer have an adviser and if the adviser numbers are down and at least half of them are looking for a new home, if you can be found and trusted … there’s a great opportunity in front of us,” he said.

“So, for me, I’m maybe too optimistic sometimes, but I’m a big believer that financial advice and getting it to more Australians is going to be beneficial to us in the future without the banks involved, and perhaps then ASIC take the foot off our throats a bit more.”

Mr Brown’s comments comes as ASIC prepares to implement a number of new reforms next month, including changes to information sharing, breach reporting and hawking.

Meanwhile, it was also revealed this month that total regulatory costs in the advice sector almost doubled in the last few years to $59.59 million, well over a 100 per cent increase.

“We had to remove some of the people from the industry. We now shouldn’t be penalised moving forward from the past, and perhaps a more consultative process and getting us involved with the leaders of the advice industry to help what the future looks like for all involved,” Mr Brown said of ASIC’s regulation on the advice sector.

“I think, ideally, that would then benefit everyone, not only the advice community, but Australians trusting advisers to deliver great-quality financial advice.”