According to the latest figures from Wealth Data, there has been a net loss of 85 advisers this calendar year to date (YTD).
At the start of the year, there were a reported 15,800 advisers across the country, which has now settled to 15,715 for the week ended 3 August.
“This may seem a bit disappointing, given a positive start earlier in the year,” commented Wealth Data founder Colin Williams.
For the week ended 9 February 2023, the industry sat at a net gain of 59 advisers, with adviser movements making a gradual descent since then.
However, Mr Collins has assured that there is more than meets the eye, particularly when considered next to adviser losses in 2022.
This time last year, losses were nearly 10 times greater, having plummeted by 828 advisers.
Wealth Data highlighted Insignia Group’s particularly stagnant growth with an overall loss of 92 advisers this year.
If Insignia’s losses were discounted, net movements for this year would show a gain of seven.
WT Financial Group followed suit with a loss of 37 advisers, while AMP Group and Steinhardt Holdings both lost 23.
Meanwhile, Sequoia Group led the charge with a net gain of 17 advisers this calendar YTD, followed by Zurich Financial with 15, and three other licensee owners at 10.
Except for Sequoia, all other licensees in the top five manage fewer than 50 advisers, according to Wealth Data.
Mr Williams also noted that some adviser losses are to self-licensed models and they may still be receiving services from their old licensees.
Adviser movements this week
Adviser numbers are showing an increasing promise of levelling out – for the second time in three weeks, there was a zero net change in advisers.
Just as wealth data recorded for the week ended 27 July, the net gain in advisers this new financial YTD still reads at 143.
However, 92 advisers were affected by either resignations or appointments, more than double that of last week.
This includes eight new entrants who came into the scene this week, alongside four new licensees starting up and three having ceased.
Twenty-eight licensees made net gains of 42 advisers, with Shaw and Partners up by four, with two advisers each switching from Ord Minnett and Fortrend Securities.
Four licensee owners had a positive uptick of three, including two of the new licensees. IA Advice had all three of its new advisers move across from Grange Securities and Capital Partners welcomed two advisers from Synchron, part of WT Financial Group, in addition to a new entrant.
Three licensees had gains of two, including another new licensee. Two advisers moved across from Lonsdale to Skybridge and Australian Unity nabbed an adviser from Findex and a new entrant.
Overall, 20 licensee owners each welcomed one adviser, including Steinhardt Holdings (Infocus), Macquarie Group, Capstone, and the Australian Retirement Group.
Meanwhile, 25 licensees had net losses of 43 advisers.
Insignia lost 12 this week after appointing two and losing 14. Notably, five advisers transitioned from Lonsdale, a firm that now stands at zero advisers. Mr Williams pointed out that Lonsdale boasted 198 advisers at the start of 2020.
Millenium 3 (M3) was also down five advisers, with Mr Willliams noting that M3 will be an interesting licensee to watch over coming months given Insignia previously indicating that it could be up for sale.
Two licensee owners, Fitzpatricks and Andrew Baxter (Grange Securities) were down by three. Fitzpatricks, in particular, noted a loss of 15 advisers this year, a 17.44 per cent drop from 86 to 71, marking the highest percentage loss among licensee owners with 50 or more advisers.
Three licensee owners were down two each including AAN Wealth and a tail of 19 licensee owners lost an adviser each including AMP Group, Clime Group, Fortnum, and WT Financial.
A lot of advisers were hoping that the QAR would achieve something positive for the profession, now it has been confirmed that it won’t the numbers of people leaving will start to increase again.
Add on top the increase I the levy, remember estimates have always been u derived and paying for CSOLR I predict huge exodus in June 24
Even the tobacco and gambling industries have received better treatment from parliament than us.
What a creative interpretation of statistics, this person should be an actuary spruiking annuities to super funds. Here’s a counter view – over 700 advisers left in the last year and there are less than 16000 and also over 30% less than 10 years ago. When the population has increased by millions. Stop choking the advice profession to death through red tape and rubbish compliance, may actually grow. Imaging the creative statistics you could invent then!
Talk about spinning numbers! Wow.
The industry has been decimated over the last 5-6 years by incompetent, severely conflicted and extremely self-serving former LNP Government politicians (i.e. Frydenberg, Hume and O’Dwyer) who I’m ashamed to say I traditionally voted for.
It’s gone from over 33,000 advisers 3 to 4 years ago to now being less than 15,800. There is nothing positive in those figures and while the net exit figures may have slowed, there’s nothing to celebrate here. I’m barely hanging on by my fingernails now as a General Advice adviser.
Our Federal Governments, both past and current are a disgrace to their profession – and much less trustworthy than any financial adviser hanging in there still with me.