200 limited advice licenses gone in 2022

Mike Taylor

Managing Editor/Publisher, Financial Newswire

16 December 2022

2022 spelled the rapid decline of the limited advice model which was intended replace the so-called “Accountant’s Exemption”, according to analysis undertaken by WealthData.

The analysis reveals that of 341 license closures recorded during the calendar year so far, 200 of them attached to “Accounting – Limited Advice”.

Conversely, the vast majority of new licenses registered by the Australian Securities and Investments Commission (ASIC) related to traditional financial advice with 116 new licensees recorded, compared to 13 for “Accounting – Financial Planning”.

The latest WealthData analysis also underscores the degree to which financial adviser numbers have stabilized since the middle of the year with a net increase of20 being recorded, mostly driven by the entry of Provisional Advisers.

WealthData principal, Colin Williams said there had been 15 new provisional advisers recorded.

Key Adviser Movements This Week:

• Net Change of advisers +20

• 34 Licensee Owners had net gains for 41 advisers

• 20 Licensee Owners had net losses for (-21) advisers

• 1 new licensees and (-1) ceased

• 15 Provisional Advisers (PAs) and 1 ceased

Summary
A good number of new Provisional Advisers came onto the ASIC FAR this week. We often see this soon after the Financial Planning Exam results are announced. Otherwise, a relatively quiet week and one would expect this to continue as we move into the New year.

Growth This Week
Growth was dominated by the Provisional Advisers (PAs) and this led to Evans Dixon with the highest growth of net 4, all advisers being PAs. Telstra bucked the growth trend for the week, up net 3, none are PAs and all advisers coming across from different licensees.

Sequoia up plus 2 with both advisers reappearing after a short break (and passing the exam?). Masu Financial Management also up by 2, with another adviser returning after a short break and one new PA.

A tail this week of 30 licensee owners up by net one including Shartru, Oreana (now up to 99 advisers), Fortnum, Clime and Centrepoint. The one new licensee also commenced with the one adviser.

Losses This Week
Slim losses this week with Insignia down (-2) with one PA appointment at RI Advice and 2 advisers leaving Lonsdale and 1 leaving Bridges. A tail of 19 licensee owners down (-1) including AMP Group, Diverger Morgans, Picture Wealth and the one closed licensee.