Advisers churn between licensees as the exam result clock ticks

Adviser churn, rather than adviser exits has become the dominant feature of the financial planning profession as financial advisers await the outcome of the last Financial Adviser Standards and Ethics Authority (FASEA) exam.

What the latest data reveal is financial advisers moving between licensees, with mid-tier dealer groups continuing to pick up advisers exiting from AMP Limited and others.

However, this pattern of churn is expected to change when the Australian Securities and Investments Commission (ASIC) sends out the results of the latest adviser exam and those that fail are forced to stop practicing.

The churn factor is exemplified in the latest analysis from WealthData principal, Colin Williams with 28 licensee owners reporting having taken on 41 advisers and 30 licensee owners reporting the loss of 41 advisers.

In terms of licensee growth over a 12 month period, Count has grown by 32, relatively new licensee, ASVW Holdings has risen by 23 and Oreana is increased by 17.

The overall analysis from WealthData this week is as follows:

Key Adviser Movements This Week:

Net Change of advisers (-4)

28 Licensee Owners had net gains for 41* advisers

30 Licensee Owners had net losses for (-41*) advisers

1 new licensee commenced and (-7) ceased

8 Provisional Advisers (PA) commenced and (-1) ceased.

Summary

A slower week with a net decline of (-4) advisers. The financial year still looks strong at plus 152 compared to 76 for the corresponding period last year. A  solid week of 8 Provisional Advisers being appointed.

Growth This Week

A new licensee commenced this week with a total of 6 advisers. LFG Financial services gained 4 advisers (3 from Badge Financial and are currently still showing current at Badge) and losing 1 to be plus 3 for the week. Janus Financial (First Financial) also up net 3, all being new Provisional Advisers.

4 licensee owners up plus 2 including Perpetual and MWL and MIQ Capital Partners. 21 licensee owners up plus 1 including Shartru, Oreana, HESTA, Castleguard (Lifespan) and ASVW Holdings.

Losses This week

AMP Group having another tough week with a net loss of (-6) advisers, putting on 2 and losing (-8). Diverger down (-4) with the remaining six advisers at The SMSF Experts leaving, 2 of which moved to Merit. A small licensee closed accounting for 3 advisers and Clime Group down (-2). A long tail of 26 licensee owners down (-1) including Centrepoint, Fiducian, Macquarie Group and NTAA.

A total of 7 licensees effectively closed, with a number of these backdated into last year. In total they accounted for the loss of (-14) advisers, only a small number appointed elsewhere.