Around 1,315 advisers exited financial planning in 2022
The Australian financial planning profession will finish the 2022 calendar year with around 1,315 fewer advisers than were registered on the Financial Adviser Register on 1 January.
But the good news is that this rate of decline is around half that which occurred in calendar 2021 when 3,460 advisers headed for the exit, according to analysis from WealthData.
As the profession runs down to the end of the calendar year, there are currently 15,854 advisers registered on the FAR, down from 17,169 at the beginning of January.
But the bottom line is that over the space of two years, the profession saw the loss of 4,775 financial advisers and the process of replenishment is, at best, tentative notwithstanding an increasing number of Provisional Advisers entering the sector.
According to WealthData principal, Colin Williams, there were 342 “new entrants’ to the profession this calendar year, representing a significant step up from 2021.
He said the majority (242) are still currently Provisional Advisers with the remainder being appointed during the year and subsequently becoming “advisers”.
Williams noted that while 2022 had started with 17,169 advisers, this tended to disguise the fact that there had been a rush of exits closing out 2021 in the wake of Financial Adviser Standards and Ethics Authority (FASEA) exam failures and other reasons for retirement.
He said that in the two months leading up to the close of last year there had been 18,392 advisers on the register with a rapid decline being experienced as the calendar ticked over in 2022.
The WealthData analysis has confirmed a stabilisation in adviser numbers since the middle of the year.
Josh Frydenbuger must be so proud!!
How is the new $10 mil pay packet from GoldmanSacks working out for ya mate?
Any news on the education standards requirement cut off in 2025 – i.e waiver of education requirements for someone who has been in the industry for 10 years or more – I suggest if that doesn’t get through then we will see more exits – me being one
No official change yet. But Jones did put out a proposal during the year which effectively increased it from 10 years to 17 years. That, combined with the long delay in announcing anything, may be a good indicator he is trying to water down or back away from his election promise.
I’m expecting Jones to back down and walk away from it
Me also