Adviser growth increasingly reliant on new entrants

New entrants, particularly provisional advisers, have become the almost sole growth area for the financial advice professional, according to the latest analysis from WealthData.

Looking at the influence of new entrants, WealthData’s Colin Williams has pointed to the fact that there have been 233 new entrants to the Financial Adviser Register since 1 July, last year but, at the same time, 324 advisers have left.

He said this pointed to a net loss off 557 and that, therefore, growth via new entrants has become a key strategy for licensees wishing to build scale.

Key Adviser Movements This Week:

Net Change of advisers (-6)

Net Change of +57 for 2023

23 Licensee Owners had net gains for 31 advisers

31 Licensee Owners had net losses for (-40) advisers

2 new licensees and (-2) ceased

7 Provisional Advisers (PAs) commenced and 1 ceased.

Summary

A relatively quiet week with 69 advisers joining / leaving licensees. While the net loss was (-6) for the week, the number of the calendar year only dropped by (-2) to +57 as some resignations were backdated into 2022.

This week we take another look into New Entrants – Since mid 2022, hiring new entrants has become a core growth opportunity for many licensees.

Growth This Week

Sequoia Group up by 3 with all advisers joining Interprac. All 3 from different licensees and 2 coming back after a short break.

AMP Group up by 3 with two advisers from different licensees and one new Provisional Adviser

A new licensee commenced with 2 advisers, (details given to Members) both moving away from Respect Financial Services

Centrepoint also up by 2 with 1 adviser recommencing and 1 from another licensee

2 small licensees, Altitude and Innate  up by 2 advisers each. All 4 advisers being new Provisional Advisers

17 licensee owners up by net 1 including Insignia, Perpetual and 14 licensee owners that have less than 20 advisers.

Losses This Week

Count Group down by (-4) after a practice ceased and one of those advisers joining Consultum

6 licensee owners were down by net (-2) including Janus, NAB via 2 advisers leaving JBWere, and Ned Schepis (Respect Financial services), as mentioned earlier, 2 advisers moving to a new licensee. 1 licensee that ceased also lost 2 advisers.

24 license owners down net (-1) each including Clime, Fitzpatricks, Macquarie Group and Steinhardt (Infocus).