Merger activity will be on the rise during this year on the back of regulatory changes, according to industry experts.
With the introduction of the government's MySuper and Future of Financial Advice (FOFA) reforms placing pressure on businesses, further consolidation of the financial services industry is expected.
"2013 will continue to bring consolidation and rationalisation in the industry," Total Financial Solutions chief executive Phil Aris told InvestorDaily.
"A number of privately owned mid-size dealer groups will continue to struggle to survive and business failures can be expected this year."
Consolidation within the financial services industry was a trend seen throughout 2012, with competition causing downward pressure on fees.
However, advice groups with strong business structures in place will be better able to weather industry changes as they gain momentum, according to Mr Aris.
Aberdeen Asset Management's managing director, Brett Jolie, said consolidation and downward pressure on fees would also be two of the main trends this year.
"This in turn will impact the profitability of all service providers, including fund managers, who will need to ensure they have strong value propositions and efficient operating structures to survive," he said.
But with 2013 already shaping up to be a year of change within the industry, Mr Jolie said it is likely that the large institutions will continue to form mergers with smaller groups.
"We expect consolidation to continue in the wake of FOFA, with increased concentration of the advice industry under the major banks," he said.
"The reduction in competition through consolidation will be an unintended consequence, albeit one that we all must come to terms with."
