‘Micro AFSL’ growth continues as adviser numbers fall

According to the latest numbers from Wealth Data, adviser numbers dropped by eight for the week ending 9 November, which follows a net loss of 12 advisers over the previous two weeks.

The total number of advisers still on the Financial Advisers Register (FAR) is now 15,682. While this represents a loss of 117 advisers for 2023 as a whole, the profession is still in the positive for the financial year with an increase of 122.

In addition to no licensees ceasing in the week to 9 November, there has also been six new licensees spring up, which follows the addition of eight in the prior two weeks. Eight new entrants have joined the profession as well; however, over the last few weeks, the entrance of advisers has not been enough to combat the losses.

Wealth Data founder Colin Williams explained that many of the new licensees that have been starting up fall into the “micro AFSL” category.

“I can’t say for sure, but I think we coined the term ‘micro AFSL’. It was a simple way to describe the typical new licensee (AFSL) that we see each week being created, with another six this week alone,” Mr Williams said.

“The ‘micro’ represents the fact that they are very small in terms of the number of advisers attached to the licensee. In our opinion, this helps to differentiate from ‘self-licensed’, which is also often used.

“The term should not be considered as representing a different AFSL to any other AFSL, i.e. may have special privileges or is restricted in any way whatsoever.”

Among the 103 new licensees that have commenced in 2023 that still have advisers current, Wealth Data said just four have more than 10 advisers and 95 have five or fewer advisers.

Adviser movement this week

Shaw and Partners, Rodney James Hayes - Boston Wealth, Concord Licensee Services, Alman Partners, and two new licensees all gained two advisers, while there were no licensee owners making larger gains for the week.

Clime Group, AMP Group, and the remaining four new licensees were among the 17 licensee owners to grow by a single adviser each this week.

Financial Link (NextGen) lost five advisers for the week, with Wealth Data noting that the licensee has just four advisers left.

Philborne (Dirigere Advisory) and Capstone lost three advisers, while Findex, Picture Wealth and Diverger were among five licensees to lose two advisers each.

Centrepoint, WT Financial, and Australian Unity were among the 15 licensee owners to drop one adviser each this week.