Wealth Data analysis recorded a net loss of eight advisers in the week ending 20 June, bringing overall adviser numbers down to 15,589.
This is the fourth consecutive week for adviser declines, equalling a total loss of 49 advisers over the period.
Some 20 licensee owners had net losses of 29 advisers in total over the week.
This was led by Count, which bid farewell to six advisers. Three moved from Merit Wealth and one from GPS Wealth, with none showing as appointed elsewhere. The licensee lost an additional adviser from Paragem who joined Koda Capital and one from Count who joined LRM Wealth Management.
Both Sustainable Life Solutions and William Buck dropped by three advisers each, with none displaying as appointed elsewhere. Meanwhile, 17 licensee owners lost one adviser each, including Shaw and Partners, MIQ Capital and Fortnum.
In terms of adviser growth over the week, 15 licensees had net gains of 22 advisers all up.
Australian Retirement Trust (ART) saw the highest gains as it welcomed six advisers to its ranks. All joined from different licensees, with most returning to advice after having taken a break.
Centrepoint Alliance rose by two advisers after it appointed three and lost one adviser. IMFG also increased by two advisers, both being new entrants.
A small tail of 12 licensee owners welcomed one adviser each, such as Infocus, Telstra Super, and Koda Capital.
This was also the second consecutive week of no new licensees, while one ceased operations. Last week, ifa reported on the trend of ceasing licensees outweighing new players.
However, Wealth Data founder Colin Williams noted: “We expect a correction in the first weeks of reporting in July, as typically this is the time many advisers start their next stage of their business by taking out their own Australian financial services licence”.
“We know from previous research that some of the firms ceasing are due to mergers and acquisitions. However, the trend of new licensees is slowing and given the number that commenced a few years ago, it’s not surprising that some of these are now coming to an end,” Williams added.
Over the past 12 months, 115 new licensees have commenced and 89 have ceased, demonstrating a contrasting result from the current trend
The end of financial year period is expected to see further volatility in adviser numbers as professionals look to switch licensees.
Though I don’t agree with what has been done, it is time advisors grew up and stopped taking fees out of superannuation. They are the first to tell clients how taking out lump somes will affect their retirement savings, they are aware of the contribution limits, the tax benefits of saving within super, but threw pure laziness, they take ongoing fees and even plan fees out of the clients previous superannuation balances. If you do not want to be employees of the superannuation trustees, stop complaining and find a better way, time to grow up !
I think it has more to do with client’s preferring to keep their after-tax dollars in their pockets and put THEIR MONEY in super to good use. The client is given the choice. Perhaps you are hoping the advisor “threw” the advice in for free?
If Financial Advice was wholly and unconditionally tax deductible there would be an excellent argument to pay fees from the hip pocket, but there are plenty of dodgy accountants out there to muddy the waters, who only see their clients in terms of billing opportunities for the current financial year.