Just 11% of financial advisers plan to leave the industry if the full recommendations from the Royal Commission are implemented. However, data shows the industry's outlook as a whole remains positive.
This is a key finding from Investment Trends' 2019 Licensee Satisfaction Report which further shows the advice industry remains resilient despite compliance and regulatory pressure.
Investment Trends found only 11% of financial advisers intend to leave the industry if the full recommendations of the Royal Commission are implemented.
About 7% of advisers said they will cease providing advice when FASEA's education requirements come into effect in 2024.
As advisers adjust to the new regulatory regime, they report the issue of serving clients in an affordable manner is a growing concern.
About 43% of advisers said they are facing obstacles in providing affordable advice. At the same time last year only 33% felt affordability was a big issue.
Investment Trends research director Recep Peker said: "While heightened regulation will add time and cost pressures to their business, the vast majority of financial planners have no plans for leaving."
He added that advisers face the task of having to adapt their businesses to the current environment.
"However, planners recognise the need to evolve their business not only to satisfy regulatory standards, but also to meet the demands of shifting consumer preferences and an uncertain investing climate," Peker said.
When asked how the Royal Commission will impact their practice, 69% said they intend to accelerate the adoption of technology to better serve clients.
"By using technology more effectively, planners believe they can enrich their client engagement capabilities, helping them better demonstrate value to existing clients and to expand their pool of potential clients," said Peker.
The survey also highlighted the trend towards self-licensing.
About 24% of those surveyed now operate their own AFSL or belong to a self-licensed boutique.
About 55% intend to remain with their existing dealer group.
However, Peker explained that 91% of advisers surveyed sought further assistance from their dealer group - including support with back office efficiency and ongoing client engagement.
The report is based on a survey of 1,030 financial planners conducted in May this year.