According to research from the Rainmaker Information Financial Adviser Report, 626 financial advisers joined the industry in the quarter to 31 March 2023.
“It is too early to determine if this upturn signifies a recovery or a temporary anomaly, but it provides a glimmer of hope for the industry,” said Alex Dunnin, executive director of research and compliance at Rainmaker Information.
In addition to the growth of new advisers, there was also an increase of 213 licensees during the March 2023 quarter, with the majority of these being small non-aligned Australian Financial Services Licensees (AFSLs).
However, AMP Financial Planning, Fortnum, Industry Fund Services, Bridges, and InterPrac attracted the highest number of financial advisers to their licences.
“AFSLs aligned with super funds experienced the sharpest increase in adviser numbers, reinforcing the significance of this sector in the industry’s recovery,” said Mr Dunnin.
Adviser numbers are still down over the last year despite this quarterly growth, with the number of ASIC-registered financial advisers dropping 8.2 per cent (a net loss of 1,447) in the 12 months leading up to March 2023, reaching a total of 16,155.
The number of advice licensees also fell 13 per cent, or 266, over the 12-month period to sit at 1,824.
In terms of overall movement, in the year to 31 March, 1,876 advisers joined an AFSL, while 3,034 advisers ceased their association with one.
Rainmaker Information also found that about 64 per cent of financial advisers fall in the non-aligned segment, with 36 per cent of advisers associated with aligned AFSLs.
The number of aligned financial advisers declined at a faster rate than non-aligned, with a 12 per cent drop in aligned numbers and a 6 per cent drop in non-aligned.
AMP Financial Planning has retained its place as the largest financial advice licensee with 508 verified financial advisers, followed by Morgans Financial with 426 advisers. Charter, InterPrac, and Consultum held 302, 301, and 297 advisers, respectively.
“While challenges persist, the encouraging increase in adviser numbers during the March 2023 quarter indicates a potential turnaround for the sector,” said Mr Dunnin.
“Industry stakeholders are cautiously optimistic about the future and will closely monitor the market to assess whether this positive momentum can be sustained.”
The Rainmaker Information numbers are broadly in line with the Adviser Ratings Musical Chairs report, which was released in May and found there was a quarterly increase in overall adviser numbers for the first time in five years.
“After several years of upheaval, there are early signs the 2023 calendar year may bring renewal for financial advisers,” Adviser Ratings said.
How can AMP rank so highly in terms of adviser numbers? What sort of an adviser would want to be in business with a company that operates like they have in recent years? Saddens me how many advisers choose self-interest over principals.