Adviser exits taper but not before deep loss of experience
Financial adviser exits have slowed down significantly but the latest data reveals just how much experience was lost to the profession last year.
According to the latest analysis from WealthData a total of 2,171 advisers resigned and dropped off the Financial Adviser Register (FAR) last year, but the more important element of that data is that 513 of that number had more than 20 years’ experience and a further 603 had more than a decade of experience.
Just as importantly, 1,110 of the exited advisers were providing holistic advice.
WealthData principal, Colin Williams pointed out that it was likely a significant number of the advisers with more than 20 years’ experience had exited due to retirement, although the impact of the FASEA exam could also not be discounted.
Key Adviser Movements This Week:
Net Change of advisers (-6)
Net Change of plus 28 for the start of the new year
20 Licensee Owners had net gains for 23 advisers
21 Licensee Owners had net losses for (-29) advisers
1 new licensees and (-1) ceased
7 Provisional Advisers (PAs) commenced and (-5) ceased.
Summary
The year is still looking positive with most adviser losses backdated into 2022. In this post, we take a deep dive into the advisers who left during 2022..
Growth This Week
Diverger are up by a net of three advisers, with two new Provisional Advisers hired at Paragem. GPS hired two from Politis and Merit Wealth lost one adviser to give a net of three. Financial Link Group hired two, with one from MWL and another adviser coming back after a short break.
A tail of 18 who are up by a net of one adviser each including Sequoia Group who hired four at Interprac (Three moving from Olive Financial Markets) but lost three advisers, one at Interprac and two at Libertas. Other groups up by one include Quadrant, Fiducian, Centrepoint and ACCRU Group.
The one new licensee was a single adviser moving away from Fortnum.
Losses This Week
Trustee Heilig Holding, trading as Olive Financial Markets, lost all 7 advisers with three joining Interprac. AMP lost two advisers, both from Charter, who have gone to different licensees, Fiducian and Just Financial. Politis also down by two, as mentioned earlier, they went to Merit Wealth.
A tail of 18 licensee owners down by one, including Count Group, Morgans, and Steinhardt (Infocus).
We’ll be finding out before too long just how much this loss of experience matters. So much for the FPA thinking the experience pathway will undermine professionalism. By the time the experience pathway becomes a reality, it will already be a moot point.
7 PA’s in & 5 out. Future looks good for the industry said no one!