According to data from Adviser Ratings, 354 advisers ceased operating in the seven days to 2 July, a number that excluded more than 70 authorised representatives who were mid-merger and likely to re-enter the industry once their respective groups had settled transactions.
The data revealed that it was not just older, retiring advisers leading the exodus, with 48 per cent of those who left over the week having between zero and 10 years’ experience in the industry.
In a video presentation, Adviser Ratings founder Angus Wood said the numbers of advisers leaving was “significantly higher than previous weeks”, and that the industry was losing significant numbers of experienced practitioners.
“Ten per cent of those advisers who left had 30-plus years experience, so more than 30 advisers who have been in the industry for some time,” Mr Woods said.
“On the other end of the scale you can see 48 per cent of advisers had zero to 10 years [experience], but I would just caution on these numbers [that] a lot of these are accountants that are leaving the industry that previously were not required to put down years of experience under the limited AFSL option.
“So these numbers are quite concerning in terms of the years of experience of those leavers.”
There were 40 advisers switching licensees as the financial year came to a close, while just three new advisers joined the industry, Woods said.
While a number of groups added new advisers, including PIFA president Daniel Brammall’s licensee IFA Australia and Evans and Partners, the groups were still down on adviser numbers from December 2018, when the industry reached its peak.
In terms of losses, IOOF-owned Millennium3 lost 33 advisers over the week, which Mr Woods attributed to an ongoing compliance “clean-up” at the group, while Interprac lost 15 representatives and the accountant-dominated SMSF Adviser Network lost 14.
When the regulatory compliance regime assumes guilt and it’s up to the adviser to prove innocence before the fact you have a serious problem.
I’m 42 with an approved degree, diploma and Certified for over 10 years, have already completed the 2026 education requirements. I own and run a well staffed, profitable business that’s never had a complaint. I genuinely love helping the public get a better result out of the resources they have. However I’m also done!
You’d think the world was our oyster at this stage of life. However what i’m witnessing across the industry is a degree of burnout that is seriously concerning.
Well I’m out, haha… I get it if you think it’s worth staying but honestly the grass is greener on the other side!!!
This is a bloody disgrace. Financial Planners are needed now more than ever. For every adviser you can multiply the job losses by 3 to account for support staff both internal and external. According to the ASIC register, about 6,500 gone since the start of last year, so that’s around 20,000 jobs gone. Well done Peter Kell, Greg Medcraft, Kenneth Hayne, Jane Hume and Kelly O’Dwyer. I hope you are all proud of yourselves.
These comments are spot on the multiplayer impact of this is massive in terms of lost jobs, tax revenue not to mention the access to advice by orphaned clients
This outcome is exactly what ASIC, Labor and the ISN wanted, this is a massive win for them all! I just completed another hour of training this morning in the new [i][b]non-regulated[/b][b][/b][/i][i][/i] business I will soon be starting so I will be out of the business completely by end of next year orphaning over 600 clients!
No worries gimme your clients 🙂
You can buy them from me, I’ll give you a good price how about 6:1
Anon, if you idiot – get some clients all by yourself – and then you can use the smiley face for yourself.
total idiot and fool. that’s why you need others clients’ get your own fool.
Await the increase in ASIC levies, less numbers but same budget.
Shouldn’t Millennium3 start their clear out at the top with the management that were mentioned in the RC
Long overdue
There will be a tsunami exodus on 1 Jan 2026.
“So these numbers are quite concerning in terms of the years of experience of those leavers.” – Hang on to your hat – it’s just the tip of the ice berg- the full picture will be seen in 18 months.
Until the never ending tirade of legislation and finger pointing ends, this trend is likely to continue. What used to be a quite enjoyable job has become needlessly difficult and time-consuming, with the simplest of tasks taking significantly longer than they should due to the bureaucratic red tape involved. Nobody benefits from this, except for perhaps compliance specialists. I don’t envy their role in the slightest.
1.7% of all advisers leaving in a week. This is not a typical week but still …
I’m 35 and after 12 years, can’t wait to leave the industry. It’s like standing in a shooting gallery side on. Only a matter of time before you take a hit.
I’m in a similar position. 36 and been in the industry for 10 years. I just can’t see this being sustainable long term with unlimited paperwork, a best interest duty that’s impossible to satisfy, SOA’s that are increasingly cumbersome to attempt to complete, 12 month contracts that rely on future predictions of client requirements, and compliance officers lined up out the door ready to explain to you all the different ways you’ve gotten it wrong. We’ll be eventually dwindled down to zero if something doesn’t change, and financial advice will be extinct in Australia.
Couldn’t have said it any better myself!
i agree and my concern is I’m reasonably wide from the side on view
I’m 42, and already satisfied FASEA education and passed exam, i have 20 years in the industry and seen a bit. I’m not sure if I can continue either, the risk on taking on any client is like being in a shooting gallery. We are governed by ASIC, TPB, APRA, FASEA code and the endless red tape and confusing and often conflicting compliance is making it near impossible to survive and thrive. We are truly alone, and let down by our association groups, namely FPA
same age, multiple degrees including fasea approved and passed the exam. too many obligations. am I in business to help clients and make a living or to file forms to satisfy all and sundry who think it is my responsibility to satisfy them.
sorry, have plenty of brains, very honest and hardworking, came to this country with nothing and made something of myself. I am very resourceful will try another industry not afraid to start from the bottom either.
I think many advisers are scared of leaving. don’t be, it is hard after 20 years for me too, and having completed everything that was asked of me before the due date, but now it’s too much.
just because you can make us doesn’t mean that you should. we can’t comply with all and everyone’s requests. bye fed up adviser