How AMP and Insignia are losing adviser market share

Mike Taylor

Managing Editor/Publisher, Financial Newswire

24 February 2023

Insignia and AMP Limited are the two largest financial planning businesses in Australia but the reality is that they are continuing to shrink in terms of adviser numbers.

According to the latest analysis from WealthData, Insignia at 1,061 advisers and AMP Group at 929 are still much larger than the next tier down to Centrepoint at 519. However, Insignia’s market share is now at 6.66% of all advisers having started the period at 8.78%. At the same time, AMP have dropped from 7.28% to 5.83%.

By comparison, Centrepoint despite a relatively small increase in advisers of 21, have improved market share from 2.41% to 3.26%.

What is equally interesting is that, according to their latest results announced to the Australian Securities Exchange, Insignia is struggling to gain what it sees as an appropriate return on investment from wealth management while AMP Limited has yet to even reach break-even with respect to its financial planning business.

The following chart, produced by WealthData principal, Colin Williams, reveals the picture with respect to adviser market share.

Key Adviser Movements This Week:

Net Change of advisers (-5)

Net Change of +53 for 2023 YTD

21 Licensee Owners had net gains for 31 advisers

23 Licensee Owners had net losses for (-34) advisers

5 new licensees and (-1) ceased

7 Provisional Advisers (PAs) commenced and 1 ceased.

Summary

A relatively quiet week with 66 advisers joining / leaving licensees. However, a jump of 5 new licensees highlights that there are still ‘practices’ out there in large groups looking to take greater control over their business.

Growth This Week

A new Licensee commenced with 3 advisers (details given to members) – Ex Charter (AMP)

Centrepoint Group up by 3, all 3 advisers coming from different licensees

Another 2 new licensees commencing with 2 advisers each. Both new licensees leaving Lonsdale (Insignia)

Another 4 licensee owners up by 2 including Highfield Group gained 3 advisers from Viridian and lost 1 adviser.  Fiducian with both advisers being new entrants and Diverger with one being a new entrant.

13 licensee owners up by net 1 including a new license that recommenced an older AFSL. Others include Spark Partnership, Aware Super, and Canaccord.

Losses This Week

Insignia was down by (-6), as mentioned above, losing practices who are starting their own AFSLs. Over the week they lost a total of (-8) advisers and gained 2 new entrants

AMP Group down (-4), losing (-7) advisers and picking up 3, including 1 new entrant

ASVW Holdings down (-3), none showing up as ‘Current’ to date but expect them to reappear soon

Lifesherpa Holdings down (-2) losing 1 to Spark Partnership and the other still showing as ceased

19 licensee owners down (-1) each including MCA Financial Planning who have now ceased (no advisers). Also down (-1), Fortnum, Viridian who had a busy week losing 4 and gaining 3, and WT Financial Group.