The group’s latest statistics revealed 74 advisers had left the industry by 21 January, with almost half of these ceasing in the third week of January as the working year kicked into gear and practitioners returned from the summer break.
A further 12 advisers switched licensees in the week to 21 January, while six new practitioners joined the industry.
Boutique licensee Advice Evolution was one of the biggest beneficiaries of the switching trend, sitting at 71 advisers as of 21 January versus 32 at the end of December 2018, a 122 per cent increase. Mid-tier dealer group Lifespan Financial Planning also posted strong growth, sitting at 271 advisers versus 182 at the end of 2018.
The Centrepoint Alliance-owned dealer group Alliance Wealth was another fast-growing licensee, having increased its adviser numbers by 30 per cent over the past two years, from 142 in December 2018 to 185 in January 2021.
Unsurprisingly, institutional dealer groups continued to decline the fastest when it came to adviser numbers, with Commonwealth Financial Planning having decreased 70 per cent from December 2018 to January 2021, from 731 advisers down to 222.
Similarly, AMP had shrunk from 1,414 advisers in December 2018 to 809 in January 2021, a 43 per cent decline. IOOF-aligned Financial Services Partners had also shrunk by 21 per cent since December 2018, with the institution flagging it would wind up the dealer group as part of its Advice 2.0 restructuring strategy.
In addition, QSuper’s exit from personal advice continued to flow through with the super fund’s licensee, QInvest, shrinking by 46 per cent from 90 advisers in December 2018 to 49 in January 2021.
Stockbroking group EL&C Bailieu, which was acquired by rival Ord Minnett late last year, had also seen significant declines in its advice representatives, down from 120 in December 2018 to 97 currently.
Meanwhile, Perth licensee Neo Financial Services, which had also been purchased by digital advice group PictureWealth in 2020, had shrunk from 86 advisers at the end of 2018 to 69 in January.
QSuper isn’t exiting from personal advice at all. They just aren’t bothering with the costs and complexities of licensed advisers. Union super funds have unofficial ASIC immunity to give personal advice via sales and call centre staff. It allows them to recommend switching into their fund regardless of the client’s personal circumstances, and without any need for Best Interest Duty, Disclosure, or FASEA requirements.
Shall we start an industry fund for financial advisers that anyone can join?
No, because we would have to let union officials control it and siphon off money for union activities. Without that it’s not an “Industry” fund.
EL&C Bailieu has had a 19.2% reduction. Neo Financial has had a 19.8% reduction. The “significant declines” descriptor is best suited for NEO.