Drawing on feedback from more than 500 advisers and support staff, the Colonial First State-commissioned 2025 Advice Practice Profitability Report provides a snapshot of how practices are operating heading into 2026, including their growth priorities and the constraints shaping day-to-day delivery.
The findings point to relatively modest increases in client numbers. Advisers are now working with an average of 112 ongoing clients, up slightly from 110 last year, despite indicating a preference to service closer to 152. Only 18 per cent say they are at their ideal client count or intend to reduce it.
Capacity remains a central issue. The share of advisers reporting that they or their client service teams are operating at full capacity has risen from 35 per cent to 42 per cent. Inefficiencies in advice production – including the preparation of statements of advice – were identified as the next most significant barrier, cited by 27 per cent.
Over the next three years, most practices are prioritising stronger profitability (54 per cent), improved capacity to serve more clients (50 per cent), and greater process simplification (44 per cent).
“Advisers want to serve more clients and streamline operations, yet capacity constraints are rising. This highlights a critical dynamic – platform selection is a strategic enabler of growth,” said Bryce Quirk, group executive distribution at Colonial First State.
According to the report, advisers using CFS FirstChoice are working with around 30 per cent more ongoing clients than advisers using other platforms, while reporting strong profitability outcomes.
“FirstChoice outperforms the industry average across each of the business impact metrics tracked in the study, with its strongest lead in adviser satisfaction for lowering the cost of serving clients, reducing business complexity, and supporting simpler advice strategies,” Quirk said.
Technology and platform design appear set to play a larger role in operational improvements, with more practices planning to review their technology stacks (28 per cent, up from 22 per cent) and seek better system integration (32 per cent, up from 23 per cent).
According to the research, advisers using FirstChoice as their primary platform reported an average of 139 clients, compared with 107 for those using other platforms.
Among advisers using FirstChoice Managed Accounts extensively – defined as using managed accounts with at least 80 per cent of clients – most attributed benefits to the structure, including helping to keep advice fees lower (85 per cent), reducing business complexity (90 per cent), and supporting simpler advice needs (92 per cent).
“Building more streamlined and profitable practices is a key strategic priority for most advice firms, with the majority focused on simplifying operations and increasing revenue per client over the next three years,” said Recep Peker, managing director of Empower Business Advisory.
“Many see platforms playing an essential role in expanding their operational capacity, and want to partner with those offering robust, consistent processes that give them the confidence to scale sustainably and achieve their growth ambitions.”
Peker said many advisers expect to reinvest operational efficiencies back into their businesses and client service models.
“Beyond serving more clients, they say greater capacity would allow them to refine their business models and strengthen their value proposition to clients, while also achieving better work-life balance for themselves and their teams,” he said.
