While the profession has been struggling to bolster its ranks since the great exodus following the royal commission, Adviser Ratings’ Q3 2024 Musical Chairs Report has revealed 189 new adviser registrations this quarter, the greatest inflow since at least 2019.
The total number of licensed advisers, as at the time of the report’s data collection, sat at 15,516, marking an increase of 101 for the start of the financial year.
However, Wealth Data’s latest statistics showed advisers numbers dipping back below 15,500 with a net loss of 27 advisers in the week ending 31 October, bringing the total down to 15,485.
This quarter also had just 248 ceased advisers, the smallest number since Q1 of 2023, which had 212, and also marks a considerable drop from Q2 2024 which saw 433.
The report also noted a continuing shift away from diversified licensees with just 10.6 per cent sitting under this category, down from 14 per cent in the last quarter.
Subsequently, there was also a shift towards privately-owned licensees with more than 100 advisers, which increased from 19.8 per cent to 22.8 per cent.
Additionally, 71.7 per cent (11,124) of advisers are now under a privately-owned licensee, with the largest majority being under a licensee with no more than 10 advisers.
Privately-owned licensee practices have also continued their steady take over, making up 89.9 per cent of the market. Meanwhile, the presence of diversified (7.4 per cent), limited licensees (1.6 per cent), as well stockbrokers, industry super funds or not-for-profits and banks (a combined 1.1 per cent) practices continues to dwindle.
The start of this financial year saw 18 licensees discontinued, bringing the total for the year to 71, though this was balanced out by 68 new registrations for a net loss of three so far.
Of the ceased licensees, 17 were privately owned boutique licensees, while just one was a limited licence practice, and 61 per cent had been operating for at least six years.
The majority of new arrivals had either between two and five advisers or just one adviser, 16 and 12 respectively, while just one had six or more, continuing the profession’s penchant for small or boutique AFSLs.
Meanwhile, the report noted a lift in advisers switching licensees overall at 530 over the latest quarter compared with 440 in Q2.
Notably, among those changing licensees, more than half (52 per cent) were leaving a licensee with between one and 10 advisers to join a newly registered licensee.
Looking at adviser movement among licensees, Finchley & Kent fared the best this quarter, with a net increase of 36. The report recognised this as a notable achievement, given it is one of this quarter’s newly-created licensees.
This was closely followed by Picture Wealth Advisory with a net gain of 32, Alliance Wealth with 18, and Morgans Financial with 10.
On the other end of the scale, AAN Wealth Management saw the greatest loss, with a net decrease of 28 advisers, followed by Sambe Investments with 22, and Havana Financial Services and Merit Wealth, which both had a net loss of 10.
