Wealth Data has revealed that Insignia has suffered the largest number of adviser outflows to micro Australian financial services licensees (AFSLs), with 72 of its advisers said to have opted to join a much smaller licensee with between one and four advisers.
Insignia was followed by WT Financial Group at 55 and AMP at 47, while Centrepoint only lost 15 advisers.
Wealth Data founder Colin Williams noted, however, that the licensee owners may still have a relationship with the “lost” advisers by providing services to the micro AFSLs.
“Licensee owners with 100 or more advisers have lost a total of 251 advisers to the new micro AFSLs,” said Mr Williams.
Surprisingly, he noted, licensee owners with less than 20 advisers have lost 82 advisers to this segment.
Overall, there has been a total movement of 403 lost advisers to the micro segment.
“In our accounting — financial planning model, Insignia tops the list with 19 lost advisers, with 18 of the 19 advisers leaving their Lonsdale licensee. WT Financial Group comes in second with five lost advisers, followed by AMP Group with four. The total movement of advisers lost to this segment is 55,” Mr Williams added.
Reflecting on the latest adviser movements, Mr Williams revealed that in the week to 4 May, the industry contracted by 10 to 15,850, with 11 new entrants to the Financial Advisers Register (FAR) helping to cushion a large number of resignations.
Insignia lost seven advisers, with only one showing as being appointed elsewhere. This, Wealth Data pointed out, brings insignia advisers numbers to 1,034.
Politis Investment Strategies and WT Financial both lost four advisers, with only one of the four at each licensee showing as being reappointed elsewhere.
It means the micro licenses have less oversight that some advisers still see as positive. Micro licensees have very few staff to support needs of their third party advisers so offer a lower fee and almost no support simply because there is no scale or revenue to fund such support , so much for an industry trying to ift its standards
The traditional advice models are moribund. They are unprofitable and do not address the times. They carry on as if the internet and several royal Commissions hadn’t happened.
Does this signify advisers are growing disgruntled with their licensees and their impeding compliance?
Good time for the government to assess the need for AFSL/licensees for qualified advisers.