The latest figures from Wealth Data show that the number of ceased advice licensees this financial year is nearly four times higher than the previous period.
Since the 2024–25 financial year commenced, 11 Australian Financial Services licensees have discontinued their operations. In comparison, this figure was at just three for the 2023–24 financial year to date – nearly four times the number.
According to Wealth Data founder Colin Williams, the rise in ceased licensees is likely driven by M&A activity among new AFS licensees.
“This increase may be expected as many newer licensees are merging or being acquired by similar companies. Regardless, the rise in the number ceasing operations will be important to monitor throughout the year,” he said.
Meanwhile, the initial rush of new licensees opening their doors when FY2024–25 began has ended, Williams observed, as the week ending 15 August saw no new licensees commence.
“Comparing this data to the same period last year, the number of new licensees is similar: 22 this year compared to 24 last year.”
Speaking on a recent episode of The ifa Show, Entireti chief executive Neil Younger flagged the likelihood that licensee consolidation would continue to ramp up.
“Where you might see some more consolidation is in that smaller end of the AFSL number set. Not right down at the one, two-person bands, more so in that sort of 50 to 100, maybe 150 AFSL level where it’s challenging at that level to get the economics right and they might find themselves either competed against from a scale perspective or struggling to ensure an appropriate level of sustainability in the business model,” Younger said.
“I think we’ll see more consolidation, no doubt.”
The past week ending 15 August also saw financial adviser numbers surpass the 15,500 mark again. A net growth of 13 advisers in the week saw the profession rise to 15,510, made up by 12 new entrants.
The number of new entrants who have joined the advice profession in FY24–25 recently exceeded 100, with the beginning of the financial year period often seeing a strong number of advisers join the Financial Advisers Register (FAR).
Some 25 licensee owners had net gains of 50 advisers in total, Wealth Data recorded. This was led by Lifespan Financial Planning, which welcomed five advisers to its ranks. Two advisers joined from Morgans, another two from Madison (Infocus), and one from Synchron (WT Financial Group).
Four AFS licensees grew by three advisers each: WT Financial Group, Morgans, Fitzpatricks, and Finchley and Kent.
Another six licensees were up by two advisers each, including Sequoia Group and Shaw and Partners, while a tail of 14 licensee owners increased by one adviser each.
In terms of adviser losses, 25 AFS licensees had net declines of 28 advisers all up. Bell Group, Centrepoint Alliance, and Infocus all lost two advisers each, while a long tail of 22 licensees were down by one adviser each.
