The number of full service financial advisers will almost halve over the next 12 years, according to research from Rice Warner.
The research looked at the future of financial planning after the ban on commissions was announced by the Minister for Superannuation Chris Bowen on Monday.
The research, commissioned by Industry Fund Services, found the 15,400 advisers currently offering a full service will decline to 8600 by 2024.
Despite the fall in full service adviser numbers there will be an additional 3200 advisers in 2024, providing targeted advice to people as they continue to demand such advice, the report said.
"Our projections show that the demand for the simpler targeted advice will increase substantially, to the point where one in thirteen people across the overall population or one in seven employed people will obtain regulated financial advice each year," the report said.
Superannuation funds will be well placed to offer simple advice through intra-fund advice, according to Rice Warner director Richard Weatherhead.
"Jeremy Cooper, the chair of the Cooper review, has already hinted that he would like the intra-fund regime relaxed in MySuper," he said.
"Bowen has also announced that intra-fund will be expanded. This will make single issue, targeted advice well positioned to be delivered through intra-fund advice."
Weatherhead said financial planning firms will be able to survive in the future if they offer a hybrid of full service advice and single simple issue advice.
"Overall, there are many ways for advice businesses to transform their businesses into viable ongoing concerns."
