2022 closed with 15,841 financial advisers

Australia ended the 2022 calendar year with 15,841 financial advisers and a distinct slowing in the number of exits compared to the previous two years, according to the latest data derived from Financial Adviser Register.

The WealthData analysis has also confirmed the degree to which the shape and texture of the financial planning profession has changed as mid-sized licensees have grown their numbers while the remaining majors – AMP Limited and Insignia – have continued their decline.

In calendar year terms, AMP Limited lost 187 advisers while Insignia lost 184 as both companies implemented strategies aimed at turning their wealth management businesses into profit centres.

However, just because advisers were lost to AMP and Insignia did not mean they were lost to the profession, with the WealthData analysis showing that groups such as Count Financial, PSK Financial Services, MBS Advice and Industry Super Holdings remained in growth mode.

It showed that Count grew its adviser numbers by 32 to 280, PSK grew by 29 advisers to 80 and MBS and ISH grew by 17 to 17 and 121 respectively.

The bottom line, however, is that whether measured across the calendar year or the financial year, financial adviser exits are well down on the prior 12-month period.

In calendar year terms, 1,328 advisers exited the sector in 2022 compared to 4,078 in the prior corresponding period while in financial year to date terms, 349 advisers have exited compared to 2,398 in the prior corresponding period.

Commenting on the data, WealthData principal, Colin Williams said there was no doubt that the dynamic which had been driven by deadlines around the financial adviser exam had dissipated over the closing six months of 2022.

He said that while he expected that the year-end data would change as further data was received by the Australian Securities and Investments Commission (ASIC) he did not expect the big changes witnessed in previous years.

At the close of 2022, Insignia Group represented Australia’s largest financial planning license-holder with 1,073 advisers, well ahead of AMP with 931.

WealthData’s Williams noted that not only had the number of financial advisers exiting the profession over the past six months slowed significantly, but there had also been a slowing in the number of licensee closures, with just 53 closing for the financial year to date compared with 346 for the calendar year.

Most of the licensee closures related to the accountants limited licensing regime.