According to recent findings from Wealth Data, it is difficult to know exactly where financial planning models are heading into the future.
“To say that the financial planning profession has been living in turbulent times over recent years would be an understatement,” commented Wealth Data founder Colin Williams.
The research firm explored the change in both adviser numbers and active licensee numbers since the start of 2019, focusing on financial planning, accounting, investment advice, and super funds.
Wealth Data discovered that the number of advisers across the business models had dropped by 8,766 or 36.93 per cent, however, the number of licensees had increased by 253 or 17.51 per cent.
“All the data tends to suggest that self-licensed models or ‘micro-AFSLs’, as we like to refer to them, have definitely shaken up traditional models,” Mr Williams said.
For example, back in 2019, there were 568 licensees with up to two advisers – that number now sits at 869.
While those figures may look bleak for the major licensees, Mr Williams assured that they still dominate the number of advisers.
Namely, 41.2 per cent of all advisers are currently spread across 30 licensees that are greater than 100 advisers in size, and a further 24 per cent represent licensees with a population between 20 and 99 advisers.
Meanwhile, the number of advisers in micro-AFSLs of less than 10 advisers is currently sitting at 27.1 per cent.
“We’re a long way from reaching a final destination, but the next few months will be very interesting to follow and may at least shed some light as to where the final destination is going to be,” Mr Williams commented.
Adviser movements this week
For the week ended 17 August, Wealth Data reported a net gain of two advisers, boosted by a total of 14 new entrants.
Nonetheless, the net change of advisers this calendar year to date (YTD) still lay in the red, with a loss of 87, bringing the current number of advisers to 15,713.
Overall, 59 advisers were affected by appointments and resignations, while one licensee started up and another ceased.
This week, 21 licensee owners had net gains of 28 advisers.
Insignia had a solid week of growth, up by seven for the week, including three new entrants and the remaining four advisers all coming from different AFSLs.
Of the seven advisers who joined Insignia, six commenced at Consultum and the other started at Millennium3.
Kaizen Wealth was up by two, both being new entrants.
Nineteen licensees were up by net one each including Shaw and Partners, Fitzpatricks, Fiducian, Shartru, and the lone new AFSL.
Meanwhile, 20 licensees had net losses of 25 advisers.
Count Group led the charge with a loss of three, wherein Count Financial appointed one new entrant and lost one adviser to Picture Wealth, while Affinia lost three advisers including one who commenced their own AFSL this week.
Diverger Group was also down by three, losing two advisers to Merit Wealth and one to GPS Wealth.
DFS No 1 (My Fortress) was down by two, although both advisers have not been appointed elsewhere at this stage.
Seventeen licensee owners lost one adviser each, including AIA Company, Castleguard Trust (Lifespan), Macquarie Group, and UniSuper.
