Wealth Data noted that FY2024–25 is “off to a positive start” for the advice industry with a rise of 78 advisers as more practices record their new hires, but the figure is notably less than this time last year, which recorded a gain of 136 advisers.
“We do expect improvement on the 78 number as updates keep coming in over the next couple of weeks,” acknowledged Colin Williams, Wealth Data founder.
Looking at the week ending 4 July, which included the last three days of FY23–24, there was a net decline of 78 advisers. Coupled with last week’s drop of 81 advisers, the past two weeks have cumulatively lost 159 as advisers switched licensees or dropped off the register before FY23–24 finished.
Williams said the losses over the last two weeks were “a lot more than he thought” given earlier gains. This led him to conclude that overall sums for the 2024 calendar year will be worse than initially expected despite a strong start to the year.
Back in May, it had been expected that losses this year would “not be so severe” as the same time last year was affected by the financial adviser exam and confusion around the experience pathway, which has now been implemented.
The current calendar year figure stands at -185, whereas just two weeks ago it was at -26. Meanwhile, the same time last calendar year had a less significant decline at -109.
“Based on this data, it looks like 2024 is heading for a bigger loss than 2023, which is disappointing given the positive start. The total loss for the full 2023 year was (-187),” the founder added.
There have also been six consecutive weeks of losses in the lead-up to the new financial year. In the month of June alone, nearly 200 advisers departed the profession.
Analysing the financial year just passed, it currently stands at a loss of 205 advisers. On the upside, Williams noted, this decline is “significantly less” than the previous financial year, which ended in a net loss of 633 advisers.
Wealth Data is expected to provide a complete summary of the FY23–24 figures, with additional clarity in due course as advice licensees have 30 days to update adviser details.
Weekly numbers
There are currently 15,430 advisers in the industry. Some 20 new entrants joined in the past week, while a noteworthy 246 advisers were active with appointments and resignations. Eight new licensees commenced operations and four ceased.
Examining the losses over the week, 74 licensee owners had net losses of 154 advisers in total. This was led by Insignia Financial with a decline of 13.
Fortnum Private Wealth lost 10 advisers, AMP Group was down by eight advisers, and Morgans declined by seven.
A loss of six advisers was seen at both Godfrey Pembroke and WT Financial Group, respectively, while Count was down by five advisers.
Both Centrepoint Alliance and Macquarie Group lost four advisers each. Meanwhile, eight licensees were down by three advisers each. Some 11 licensee owners were down by two advisers each, and a total of 47 licensee owners were down by one each.
In terms of adviser growth, 50 licensee owners had net gains of 75 advisers in total. Vincents Advisory came in first position with a growth of seven advisers.
A new licensee commenced with five advisers from Godfrey Pembroke’s licence, while another new licensee opened with four advisers who moved from AMP Financial Planning.
Three licensees were up by three advisers each, six licensees rose by two each, and a long tail of 38 licensee owners grew by one adviser each.
Haave to say it, but it’s not at all surprising… financial planning as a profession doesn’t have a lot going for it: a lot of work, particularly admin-heavy, a lot of responsibility, legal obligations etc and very little to show for it in terms of financial rewards… I’m finding I’m earning less than half my clients, as an employed adviser!
Certainly wouldn’t be recommending it as a career path, to those bright-eyed, bushy tailed new entrants…
While Jones and Industry funds laugh and get fat off Australians not having access to unconflicted advice. Disgusting
Last Friday I accidentally bumped into a former staffer that I knew who used to work for Senator Mathias Cormann when he was the Shadow Minister for Super. Without prompting, the former staffer immediately said “Even though Cormann disagreed with you at the time, the fact remains (looking back) that you were totally correct. The Hayne/Annual Fee Renewal Consent Forms etc DID decimate the retail Adviser numbers”. This is full vindication from an impartial observer, with the benefit of hindsight.
THE TRUTH REMAINS that until new subsection 962G(1) & 962G (2) of the Corporations Act is removed (red tape that doesn’t exist in any other nation on earth) PER CAPITA retail financial adviser numbers in Australia will continue to fall. The continual victimisation of retail advisers has to end.