After a flurry of movement last week that saw a total of 275 advisers either being appointed, resigning or switching, Wealth Data revealed that this week returned to some normality, with 87 advisers affected.
During the week ending 13 July, the industry observed a positive net change of eight advisers, bringing the total number of advisers to 15,707.
Looking at the bigger picture, despite 13 new entrants also having joined the scene this week, the net change for this calendar year to date still lay in the red, with a loss of 91 advisers.
According to Wealth Data’s end of financial year figures, the profession lost 599 advisers over FY22–23, beginning with 16,183 advisers on the Financial Advisers Register (FAR) and closing out at 15,584.
Since then, multiple resignations have backdated into the last financial year, increasing the net loss by eight. As a result, the net loss increased to 607 advisers instead of the initially reported 599.
However, the first three business days of the 2023–24 financial year made a valiant attempt at offsetting the losses at the end of June.
“Only three days into it, the most notable change is 11 new licensees and a positive start of 115 advisers,” said Wealth Data founder Colin Williams last week.
Meanwhile, licensees underwent a lot of shuffling in the week to 13 July, with five new licensees entering the scene and two ceasing operations. Among 32 licensee owners, a net gain of 48 advisers was observed.
Notable mentions include Sequoia’s net gain of five advisers, all of which joined from their main licensee Interpac. Of the five, three came from MWL Group and two from RM Capital.
Diverger jumped back to 400 advisers, up by four, with three joining GPS and one joining Paragem.
Mercer and Castleguard Trust both had net gains of three advisers, all coming from different licensees.
According to Wealth Data figures, 25 licensees saw the addition of one adviser, including PSK Group, Macquarie, Evans Dixon, and Bombora.
On the other side of the coin, 69 licensees had net losses for 37 advisers, with 27 license owners down one including AMP Group, now sitting on 900 advisers, ANZ Bank, and Insignia.
Among them, Mancell Family Trust and WT Financial group lost two, with both advisers of the former firm showing as ceased.
Notably, a practice left Viridian and commenced under their own AFSL, taking four advisers with them.
Referencing the movement of advisers between 1 July 2022 to 13 July 2023, Mr Williams highlighted that these dates cover the start of two financial years, which is a popular time to start new licensees.
While 115 new licensees were created in this time, 50 were lost, indicating that almost one licensee has closed for every two that have opened.
What isn’t focussed on is the appalling statistics that 10-12,000 advisers have departed the industry over the last 3 years mostly as a result of abyssal multi layered legislation and mental health issues.
In another 2 years, there will be only 10,000 advisers in total & the lack of independent advice availability will be much worse.
Well done to the previous Liberal Govt who effectively destroyed the fabric of financial advice.