More than half of all financial advisers are expected to exit the industry within the next five years due to new education standards.

Consumer group Adviser Ratings says life insurance-focused licensees are most at risk of attrition, because they have the lowest education levels.

Its Financial Advice Landscape report predicts more than 14,000 advisers will leave amid fallout from the Hayne royal commission and the Financial Standards and Ethics Authority’s (FASEA) education requirements, with IOOF and AMP most at risk of “adviser churn”.

The number represents $900 billion of net client wealth.

Almost 7000 advisers have left the industry since 2015, the report says.

Adviser Ratings says the impending withdrawal of major institutions from providing advice is compounding the impact of adjustments to adviser business practices driven by FASEA and the Future of Financial Advice reforms.

Advice practices should modify their business models for sustained growth, it says.