Financial planning licensees controlled by the big four banks and AMP account between for approximately 7800 authorised representatives, or in truth, about half the active market.

With ANZ selling its wealth business to IOOF, NAB recently announcing plans to exit and CBA remaining silent on its intentions, the groundwork has been laid for a radical reshaping of the licensee industry which could affect about half the active market.

The catalyst for this has been The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry inquiry, which has hastened the move by significant numbers of advisers out of institutionally owned licensees to smaller, non-aligned licensees.

Added to this is the raft of new standards coming down the pipeline from FASEA which will insist on advisers meeting a raft of new educational standards.

As the world changes fundamentally, Koda Capital chair and former NAB wealth group executive, Steve Tucker, says advisers will begin to consider alternative advice structures to ensure their future.

In fact the data on this is clear. Research conducted by Policis in the USA and by CoreData in the UK in 2015 showed that the new regulation changed the structure of the markets fundamentally.