Financial Adviser Insights, June 27, 2024
Adviser Numbers This week - Decreased by (-81), Moving From 15,589 To 15,508
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Weekly Summary
As we get near to closing out the financial year, we suffered a major loss of advisers off the ASIC Financial Adviser Register (FAR). The net loss number of (-81) was compounded by the very small number of advisers being appointed.
It may well be that many advisers are in the process of switching licensees. However, switching this late into the financial year tends to occur on the last working day of June (the adviser ceases), and then appointed at the new licensee on the first working day of July. Therefore, the numbers this week were a bit of a surprise.
What is important to note: The negative numbers are being driven by a small sector of the adviser market. More details below.
We are expecting greater volatility next week as the movement of advisers over June 30 and July 1 will be captured in the data from ASIC.
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Key Adviser Movements This Week:
Net change of advisers (-81)
Current number of advisers at 15,508
Net Change Calendar 2024 YTD (-107)
Net Change Financial YTD (-48)
12 Licensee Owners had net gains of 14 advisers
38 Licensee Owners had net losses for (-95) advisers
One new licensee commenced and none ceased
Zero New entrants
Number of advisers active this week, appointed / resigned: 110.
Growth This Week - Licensee Owners
Cancaccord Group was the only firm to have net growth greater than one. They hired three advisers with two moving across from Macquarie and one from Morgan Stanley
Eleven licensee owners up by net one including Fortnum, Findex and a new licensee.
Losses This Week - Licensee Owners
Australian Retirement Trust (ART) down by (-20). Last week they had the largest gain, up by six advisers. ART advisers that ceased, were not ‘member facing’ and are still employed by ART. The changes reflect the strategic repositioning of advice delivery at ART
Count Limited down by (-11). This included two staff members (not advisers) on the Count licensee and nine advisers at Merit Wealth. All the Merit Wealth advisers were restricted to SMSF Advice and could not offer broad based investment advice - See more below re losses this financial year to date by business models
AvalonFS down by six advisers. None of the advisers showing as being appointed elsewhere
Sequoia Group also down by six advisers and again none showing as being appointed elsewhere
Centrepoint down by four advisers, hiring one adviser from RI Advice and losing five advisers - only one being appointed elsewhere
Four licensee owners down by 3 advisers each including Insignia, NTAA (SMSF Adviser Network) and Telstra
Seven licensee owners down by 2 including, AMP Group, Shartru and WT Financial Group
22 licensee owners down by one including Bell Financial, Hejaz Capital and Ord Minnett
Business Models - Gains and Losses Financial Year To Date
The table below highlights the losses of advisers for this current financial year to date. As it can be seen, the largest business models that provide broad advice are currently all positive. The losses are mostly from the Accounting - Limited Advice, (-82). Licensees in this model restrict most of their advisers to SMSF advice (no investments). The Super Funds are also weighing down the numbers at (-50).
Losses By Business Models (Peer Groups). July 1, 2023 to June 27, 2024
The table is from our Adviser Fast Facts Dashboard 6
*Note: Net loss in the table is at (-40) is different to the actual net loss of (-48). This variance occurs due to a few advisers who are authorised at more than one licensee and appear in more than one business model.
Financial Adviser Landscape - Presentation - Free Download
Last week, I presented at the FNW ‘Advice, Wealth and Super Rewired’ conference. Below, you can access the presentation for free. There are a number of charts that cover:
Financial Adviser Movement back to 2017
Calendar YTD movement including most growth / the least growth firms
Share price movement over five years of ASX listed firms associated with financial planning / wealth
The growth and impact of Micro AFSLs
New entrants - year by year
Gross revenue of advisers
Adviser opportunities - Growth of super and much more.
