The statistics revealed that 32 advisers left the industry in the week to 5 November, while 27 switched dealer groups and just three new advisers joined, for a net loss of 29 advisers. The new data follows a recent ifa poll that revealed around 49 per cent of advisers had plans to switch licensees this year.
The institutions as well as mid-tier licensees were the biggest losers in the first week of the month, with AMP losing seven advisers, bringing the wealth giant down to just 911 remaining advisers from 1,414 in December 2018.
The CountPlus-owned Count Financial also lost six advisers, marking a significant loss since its transition from Commonwealth Bank ownership, from 413 advisers in December 2018 to 241 in November 2020.
Synchron lost four advisers over the week to 5 November, with its overall numbers remaining essentially flat from 507 advisers in December 2018 to 518 currently. Meanwhile, Commonwealth Financial Planning also continued to shrink, losing four advisers over the week with its total numbers now down to 230 advisers.
However other mid-tier advice groups continued to grow, with Sequoia-owned licensee Interprac adding three new advisers over the week, although its numbers were relatively unchanged on a longer-term basis, increasing from 308 in December 2018 to 316 currently.
TAL-aligned Affinia Financial Advisers added two new advisers, capping off a period of strong growth with the group increasing its numbers from 162 two years ago to 199 in November. Boutique licensee Finchley & Kent also added three advisers during the first week of the month.
As the move away from the large institutions continued, Adviser Ratings founder Angus Woods pointed to super funds as a key way for small business advisers to link up to new clients and tap into strong demand for advice following the upheaval of the COVID pandemic.
“Super funds have a massive role to play in advice and they’re starting to encroach on where the banks left as a lot of members start to reach retirement age, especially Baby Boomers,” Mr Woods said.
“You’re going to start to see more complex advice coming into play for a lot of members, so the move from intra fund to complex advice is a massive opportunity for advisers to start partnering up with super funds.
“I think all the funds at the moment have a significant role to play and there’s going to be a jostling across the board in terms of what that looks like for advisers and consumers.”
Boutique advisers everywhere now as the big banks and industry funds back away. A shrinking pool of quality advisers servicing a shrinking pool of clients that can actually afford to pay. How does one “partner up” with a super fund? Do you mean like the deal with FPA and CBus? Provide advice to our members but do not even think about switching out of our super fund or considering alternative options or you’ll be struck off the list. We’ll let you charge an advice fee to the super fund, but no-one else can, not even a more qualified and experienced adviser.
Super funds don’t want to employ licensed advisers who are subject to disclosure, BID, and the FASEA Code. They prefer to use unlicensed sales people to give “general advice”, using the super fund employees regulatory exemption.
Good to see Finchley and Kent get a mention.
More good news to follow.