Barely a day goes by now with signs that the financial advice world is changing - and changing significantly.

When the Financial Services Legislation Amendment Act finally came into force on March 15, advice, for all intents and purposes looked the same.

In the two months since then much has changed and many advisers have decided it is time to hang up their shingle. Two good examples in the life insurance world are Graeme Lindsay and Warren Duff. Between them there is more than 100 years experience.

While they are two we have reported on, emails come to us from advisers thanking us for the news and information on Good Returns and the quality of ASSET and TMM magazines. 

These messages invariably say that it's farewell time. For most it is compliance which has driven their decision.

We've also heard, but have been unable to get the hard data, that many life insurance companies had to turn off their accreditation for hundreds of advisers who had not entered into the new regime either under a transitional licence or someone else's Financial Advice Provider licence.

Sources within some of the companies have confirmed there is an exodus happening and companies are spending time on managing transfer of books of business to other advisers.

It's sad to see all these people leave and the invariable question is where are the new advisers going to come from to replace these people? After all one of the aims of FSLAA was to make advice more accessible for all New Zealanders.

Partners Life managing director Naomi Ballantyne made some interesting comments in her most recent appearance on Good Returns TV. The company has lost four business development managers and they are all becoming advisers.

There is talk that more people are leaving banks to become advisers, but there are not sufficient people filling the ranks of financial advice. Overall there is net loss to the industry.

And if there is not enough capacity amongst the industry to pick up some of these books then maybe life companies will end up providing more advice to clients. That sort of feels like a 21st century version of tied agents.

There is of course an upside. Now may well be a good time for people, not afraid of compliance, to enter the advice world. We all know that good advisers can earn considerable income (just look at some of the cars when there is an industry event on).

But in the here and now the regulations have seemingly failed in their goal of making advice more accessible to New Zealanders. Maybe that is only a short term situation. Time will tell.