Advice top 10 account for a third of advisers

The big banks and AMP Limited once accounted for more than 50% of Australia’s financial advisers, today the top 10 financial planning groups account for less than a third of the Financial Adviser Register (FAR).

According to new analysis issued by WealthData, the top 10 groups account for 4,991 advisers, a far cry from the situation which existed in 2014 when Government analysis pointed to the top seven firms (mostly the banks and AMP) controlling over 50% of the market.

It is a measure of how the financial advice sector has changed over the past decade that, today, the top 10 firms account for just 4,991 advisers while, back in 2014, AMP Limited alone had 3,329 advisers working under its licenses while the major banks accounted for many more.

According to the Regulation Impact Statement issued by Treasury ahead of the Future of Financial Advice changes, “The market is dominated by the top seven firms who control a total market share of over 50%, with most of these firms employing between 700 and 2,000 financial advisers each”.

Further, it said that an “estimated that 85% of financial advisers are associated with a product issuer, so that many advisers effectively act as a product pipeline. Of the remainder, the vast majority receive commissions from product issuers and so have incentives to sell products.

According to WealthData principal, these are the companies which make up the financial planning top 10:

Key Adviser Movements This Week:

• Net change of advisers (-9)
• Current number of advisers at 15,505
• Net Change Calendar 2024 YTD (-120)
• Net Change Financial YTD +162
• 20 Licensee Owners had net gains of 25 advisers
• 25 Licensee Owners had net losses for (-36) advisers
• 3 new licensees commenced and (-4) ceased
• 5 New entrants
• Number of advisers active this week, appointed / resigned: 67.

Growth This Week – Licensee Owners

• Centrepoint up by four. Two advisers switching from a small licensee, WRS Licensee Pty Ltd which is now ceased (at zero advisers). Centrepoint also captured one adviser from Capstone, one from Focused Financial Advice and one new entrant. They lost one adviser who is not showing as being reappointed to date.
• Walker Lane up by two, both advisers moving from Fortnum owned by Entireti
• New licensee commenced with two advisers. Both advisers are also showing as being authorised at Independent Financial Advisers Australia.
• 17 licensee owners up by net one each including WT Financial Group, Spark Partnership Group, Count Limited and the two remaining new licensees.

Losses This Week – Licensee Owners

• Capstone Financial down by four, one being appointed at a new licensee, the others are not showing as appointed elsewhere to date.
• Three licensee owners down by three:
  • Entireti, as mentioned losing two advisers to a new licensee. One adviser moved to Archer Private Wealth and another to Paragem. Two other advisers left and not been appointed elsewhere to date. They appointed two advisers, both coming back into advice after a short break.
  • Jesse Edward Franks (Focused Financial Advice), losing one to Centrepoint, one also to Lifestyle Asset Management and one adviser yet to be appointed elsewhere.
  • WRS Licensee Pty Ltd, now down to zero advisers, with two going to Centrepoint and the other yet to be appointed elsewhere.
• Two licensee owners down by two
  • Advice Evolution, both advisers yet to be appointed elsewhere
  • Sean Yeo (Capital Financial Planning) – Now ceased. One joining Trend Investor Services and the other joining Advocate Advisory Pty Ltd.
• A tail of 19 licensee owners down by one each including AIA Company, Fiducian and Viridian Group. The two remaining licensees that ceased also lost just the one adviser.