Wealth Data analysis has found a net loss of 81 advisers over the week ending 27 June, dragging the wider profession down to 15,508 advisers in the final week of FY2024.
This figure is 10 times greater than the net decline of eight advisers observed in the week prior.
The significant loss this week is nearly double the decline seen in the last week of FY23 – a loss of 46 advisers.
Wealth Data founder Colin Williams previously forecast high volatility in adviser numbers during the run-up to the end of the financial year as many look to switch licensees but admitted he was “surprised” by the size of this week’s numbers.
“As we get near to closing out the financial year, we suffered a major loss of advisers off the ASIC Financial Advisers Register (FAR).
“It may well be that many advisers are in the process of switching licensees. However, switching this late into the financial year tends to occur on the last working day of June (the adviser ceases), and then appointed at the new licensee on the first working day of July.
“Therefore, the numbers this week were a bit of a surprise.”
Next week, it is expected to see greater volatility as the movement of advisers over 30 June and 1 July will be captured in the Australian Securities and Investments Commission’s (ASIC) data.
Despite the heavy declines this week, the founder noted the negative numbers are being driven by a small sector of the adviser market.
Examining adviser losses this financial year to date, the greatest declines are seen in the accounting (limited advice) model at -82 advisers. Licensees in this model restrict the majority of their advisers to self-managed super fund (SMSF) advice, meaning no investment advice.
The superannuation fund model has also seen a decrease of 50 advisers. Meanwhile, the largest advice models – financial planning and investment advice – are all in the positive.
Weekly numbers
There were no new entrants this week, while 110 advisers were active with appointments and resignations.
Just 12 licensee owners had net gains of 14 advisers in total. Canaccord Group was the only licensee to have a net growth greater than one adviser. The firm appointed three advisers, as two moved across from Macquarie and one from Morgan Stanley.
Some 11 licensee owners were up by net one adviser each, including Fortnum, Findex, and a new licensee.
In terms of adviser losses, 38 licensee owners had net losses of 95 advisers in total. Australian Retirement Trust (ART) saw the highest loss with a decline of 20 advisers despite enjoying the largest gain last week of six advisers, tallying with Williams’ earlier remarks about super fund exits.
“ART advisers that ceased were not ‘member facing’ and are still employed by ART. The changes reflect the strategic repositioning of advice delivery at ART,” Williams said.
Count also suffered a double-digit loss of 11 advisers, including two non-adviser staff members on the Count licensee and nine advisers from Merit Wealth.
Both Sequoia Group and AVALONfs lost six advisers respectively, while Centrepoint Alliance was down by four advisers after it hired one from RI Advice and bid farewell to five.
Four licensees declined by three advisers each, such as Insignia Financial, and seven licensees lost two each, including AMP Group and WT Financial Group. A tail of 22 licensee owners dropped by one adviser each.
I wonder how many will re-register next week. If you are not on the register 30th June, but re-register 1st of July, no Adviser Levy payable until after 30th June 25′. I dare say we will see a few AR’s re-register next week. Yet another example of the unintended [sic] consequences of a government hell bent on destroying this industry through massive rise in costs and red tape. Saving $3k by taking yourself off the FAR register for a few days isn’t exactly ethical, but far more ethical than a government deliberating destroying our industry by invoking massive fees to do business which we have to pass onto consumers. If the CSLR levy is applied the same way (i.e. based on who is registered on FAR as at 30th of June)., then the best way we can all protest these massive fees, is to de-register from the FAR on 29th of June and re-register 1st of July each year.
The champagne corks are popping at Industry Super HQ.
It’s so profitable for advisers who run good businesses. I just don’t get all the negativity. Do some owners expect the fairies to go their offices in the night and do their work for them?
I’m a single adviser practice, I work hard, but I make hundreds of thousands of dollars a year and have rewarding relationships with clients, an wonderful team and thrive on the challenges of running a small business. I don’t ever expect for a moment to be able to make $350-500k a year without having to work hard and grind and put up with a moderate amount of crap. Anyone who does needs to get a reality check, and anyone who isn’t making that much should either be growing strongly or exiting the industry. With the demand tailwinds we have, there’s no excuse not to be doing well.
Great points! And I can’t speak for others, but with our skill sets we can earn hundreds of thousands of dollars running other business, without the constant attacks from ASIC, ISA, MEDIA APRA, and politicians, it’s not so much that the crap is moderate as you say, but that it’s never ending and lately starting to look like Jones, ISA don’t want us around.
I thought the Royal commission was going to save the industry and was well supported by institutions.
Oh well.
RC and ethics standards etc. are so awesome that institutions successfully lobbied so that these standards would not apply to their salesforce.
Now institutions no longer have to compete with hamstrung real advisers.
I guess that’s the point of all this.
Sadly this is just the beginning of the next mass industry exodus.
There are planners who have sold their business and have been kept on for 12 month transition periods. These periods are coming to an end and the planners are leaving. A mate of mine has just finished his 12 month transitional period and told me to get out!!! its the best decision he has made and his mental and overall health is the best its been.
There are more planners selling out to larger licensees while there remains some business value. These planners will leave the industry in 12 months time. I predict we will drop below 10,000 active advisers by this time next year.
Its a crying shame considering the number of Australians actively seeking financial planning advice.
Stephen Jones and the Government should be embarrassed by the mess they have created!
Your assessment is spot on! And your friend is so right!
No surprises……..12,000 advisers only by the end of 2025.
Then 10,000 by the end of 2026.
Govt sanctioned industry decimation.