Advisers early to the exit for EOFY
Financial advisers have started early on what represents a traditional upturn in end of financial year exits from the Financial Adviser Register (FAR), according to the latest analysis from WealthData.
The data has revealed that 46 advisers exited the register this week, bringing to 452 the number of financial advisers to have exited the profession this financi9al year.
WealthData principal, Colin Williiams said the 46 adviser loss to the FAR this week had occurred despite 10 new entrants meaning that 56 experienced advisers had actually ceased.
What is more, he said that past experience suggested that there would be further higher exit numbers showing up on the FAR in the coming week.
“The end and start of each financial year does create a significant amount of adviser movement. Excluding the losses at key cut off times for FASEA Exams, resignations are at their highest in June with the last day being the most critical, and appointments are at their greatest in July. Much of the movement includes advisers switching licensees.
Williams said that to put the current numbers into perspective, he said the 452 advisers lost to the adviser register this year needed to be compared to a massive 2,647 for the corresponding period last year.
Key Adviser Movements This Week:
- Net Change of advisers, down by (-46)
- Current number of advisers at 15,735
- Net Change of (-452) for Financial YTD – See more below
- 14 Licensee Owners had net gains for 17 advisers
- 53 Licensee Owners had net losses for (-80) advisers (*see summary below)
- Zero new licensees and (-3) ceased
- 10 New entrants
- Number of advisers active this week, appointed / resigned: 99.
Summary
A large loss of (-46) advisers for the week despite 10 new entrants, indicating that 56 more experienced advisers were ceased on the FAR.
While the numbers are disappointing this week, we tend to see a volatile period as we end one financial year and enter the other. We go into more detail below.
*You may have noticed that the loss at license owners this week is at (-80) and gains at 17, indicates a net loss of (-63) advisers. The reason that the actual loss is significantly less, is due to LGSS (Local Government Super now known as Active Super) losing (-13) advisers. However, the advisers were also (and still are) authorised at Industry Fund Services in October last year. Therefore, they have not been ceased on the FAR.
Growth This Week
- Evans and Partners came in at plus 3, all being new entrants. Evans and Partners have been more active than most at hiring new starters and currently have 5 provisional advisers and 6 other advisers who commenced post 2019. Given that they have a total of 91 advisers, this means that 12% are relatively new (Post 2019). AMP Group have recruited the most new starters, at 40, they come in at 4.4%.
- Clime came in at plus 2 with both advisers joining Maddison and both being new entrants
- 12 licensee owners were up plus 1 including Pitcher Partners, Koda Capital and Macquarie Group.
Losses This Week
- LGSS Super (Active Super), down (-13). As noted earlier, the advisers had also been authorised at Industry Fund Services in October 2022 and are still current on the FAR. (ActiveSuper has clarified that the advisers are still employed by ActiveSuper and actively servicing clients).
- Diverger down (-4) losing 2 advisers each at GPS Wealth and Merit Wealth.
- Count Group down (-3), losing 1 from Affinia and 2 from Count
- Ozplan also down (-3)
- Eight licensee owners down by (-2), including Insignia, Sequoia and Morgans
- A very long tail of 41 licensee owners down (-1) each including Fitzpatricks, Findex, PSK Group and WT Financial Group.
I feel sorry for the last adviser left who has to fund the entire ASIC levy/tax by themselves.
Dear Researcher,
I foretold this situation more than 18 months ago, which is why I said “God” help the last adviser !
ASIC based their budget when the levy was first introduced upon the number of advisers in the profession at the time.
As the number of advisers started to fall, inversely, the adviser levy started to rise.
No need for a rocket scientist to figure this out
Because, once the impact of LIF legislation and FASEA took hold, advisers began jumping off the modern day version of the “Titanic”.
There was only one way ASIC could continue to build their “warchest” to prosecute advisers, and that was to nail those still around more,.. to make up the shortfall.
No one should be surprised by any of this, because ASIC is answerable to no one.
There’s more to come