Adviser exits turn to adviser churn

Mike Taylor

Managing Editor/Publisher, Financial Newswire

10 February 2023

Financial adviser numbers have returned to growth in Australia with a steady level of churn as advisers move from one licensee to another, with most growth amongst smaller licensees.

New analysis from WealthData confirms the adviser churn and the overall trend of smaller licensees growing their numbers as the larger players reduce their overall numbers.

Above anything else, the data confirm that the biggest factor in the stabilisation and return to growth of adviser numbers is the expiry of the deadline for passing the financial advisers exam.

Key Adviser Movements This Week:

Net Change of advisers +33

Net Change of +59 for 2023

25 Licensee Owners had net gains for 53 advisers

15 Licensee Owners had net losses for (-19) advisers

3 new licensee and 1 ceased

8 Provisional Advisers (PAs) commenced and zero ceased.

Summary

As predicted in last week’s report, a significant number of advisers who left the ASIC FAR (last week) were transitioning to new licensees. The transition for most is now complete and has contributed to this week’s growth after last week’s losses. The number of Provisional Advisers has also increased to 8, marking another positive week of new entrants.

Growth This Week

Zurich Assure started its new AFSL with 14 advisers. The advisers were previously at Bombora (temporarily) after Zurich acquired the ANZ Risk business along with the advisers. Zurich needed time to set up its AFSL.

A new licensee has commenced with 9 advisers. The licensee was previously a large practice at Australian Unity.

Fortnum increased by 5 after acquiring a risk business from Matrix (Centrepoint).

Perpetual increased by a net of 3, including 2 new Provisional Advisers.

Another new licensee started with 2 advisers who left Lonsdale (Insignia).

Twenty licensees recorded a net increase of 1, including Spark Partnership Group, Elston Group, and Connectus.

Losses This Week

Insignia decreased by (-3) after losing 4 advisers and gaining 1 Provisional Adviser.

Centrepoint Group decreased by (-2) after a busy week of losing 5 advisers and gaining 2.

Oreana decreased by (-2) and neither adviser has been appointed elsewhere yet.

12 licensees recorded a net decrease of (-1) each, including Fitzpatricks, AMP Group (lost 3 and gained 2), and Advice IQ.

Resignations and Appointments as a % of Licensee Owners

Building on last week’s report, which showed losses and gains by raw numbers, the charts below examine the licensee owners’ movement of appointments and resignations as a percentage of their starting position as of November 9, 2022.

The chart reveals that PSK is leading in terms of hires at 11%, followed by UniSuper at 10%. However, UniSuper has had zero resignations. It’s notable that the average line for appointments is slightly less than that for resignations, but it is much closer than it has been in a long time, now that the losses related to the Financial FASEA Exam have passed.