According to Wealth Data, there has been a net loss of 96 advisers so far in 2023, however, this is a sizeable improvement compared with the same period last year, which saw a decrease of 1,288 advisers in the comparable period.
“Overall, the calendar YTD results can be best described as ‘steady’ when compared to 2023,” said Wealth Data founder Colin Williams.
“The losses in 2022 were mostly due to the effects of advisers not passing/or attempting the financial adviser exam.”
Interestingly, it is the larger licensees that are seeing declines. Licensee owners who began 2023 with 100 or more advisers have lost a cumulative 261 advisers, while licensee owners who had freshly commenced or had fewer than 20 advisers gained a total of 208 advisers this year.
There have also been fewer new licensees so far in 2023 at 89, compared with 116 in 2022, however, the number of ceased licensees has dropped considerably. In 2022 there were 337 licensees to cease operations, while just 47 have exited during 2023 so far.
“The 2022 results dominated by the losses in the Accounting – Limited Advice (SMSF Admin advisers) peer group. Of the 337 that ceased, 198 belonged to that sector and in 2023 it is only at nine,” Mr Williams added.
Sequoia has led the way for licensees adding advisers with 27 in 2023, followed by Zurich with 15. On the other side of the scale, Insignia has seen the most losses with 122 advisers departing the licensee this year, while AMP Group shrunk by 44.
Mr Williams credited new entrants with helping to hold things steady, with the 327 new entrants this year up from 242 over the same period in 2022.
“The Financial Planning model has hired the most at 226 which represents 2.16 per cent of all current advisers. The Accounting – Financial Planning model has the highest percentage at 3.49 per cent,” he said.
“AMP Group have hired the most new entrants at 24, representing 2.74 per cent of its current advisers. Insignia at 16 or 1.69 per cent of all current advisers. No other licensee owner in double figures. Evans Dixon who have 90 current advisers have hired seven new entrants representing 7.78 per cent of their current advisers.”
Adviser movement this week
The week ending 19 October saw a small gain of one adviser, with the nine new entrants offsetting the losses. There are currently 15,702 advisers in the industry.
Australian Retirement Trust (ART) added the most advisers this week with three, while five licensee owners added two each: Count Group, Shaw and Partners, Castleguard Trust (Lifespan), AIA, and Advice Evolution.
AMP Group, Insignia, Fiducian, and Fortnum were among 15 licensee owners to add one adviser each.
There were four licensees to lose two advisers this week, including Fitzpatricks Group, Picture Wealth Group, Superfast AM, and WT Financial Group, while Aware Super, PSK, Sequoia, and Ord Minnett were among the 19 licensee owners that were down one adviser each.
People leaving will lift again once QAR is implemented and advisers find that the people who are disadvantaged are licensed financial planners. Time for wealth coaching.