Data confirms 43% of ceased advisers from larger AFSLs

Mike Taylor

Managing Editor/Publisher, Financial Newswire

2 June 2023

New analysis has confirmed what many financial advisers already knew – that the greatest number of adviser ceasing on the Financial Adviser Register (FAR) have come from the larger financial planning licensee entities.

The analysis conducted by WealthData’s Colin Williams confirms that 43% of those advisers who ceased to be on the FAR belonged to licensees that had 100 or more advisers.

In doing so, Williams noted that this happened to be proportionate to the current number of advisers at such licensees which is at 42%.

He also noted that 5.75% of those ceased belonged to licensees that are now at zero.

The WealthData analysis came against the background of another week of modest adviser exits, albeit at levels well down on the same time last year and amid continuing churn between licensees.

Key Adviser Movements This Week:

• Net Change of advisers down by (-15)
• Net Change of +14 for 2023 Calendar YTD
• 14 Licensee Owners had net gains for 20 advisers
• 25 Licensee Owners had net losses for (-26) advisers
• 2 New licensees and 1 ceased
• 2 New entrants
• Number of advisers active this week appointed / resigned: 67.

Summary

A net loss of 15 advisers this week bringing down the net gain YTD to just 14. We are expecting at least 6 advisers coming back onto the ASIC FAR very soon as they transition to a new AFSL.

Growth This Week

• Industry Super Holdings up by net 4 – all advisers from different licensees
• Mercer up by net 3 and all 3 coming from different licensees
• Ashley Hann (Planet Money) up by 2 with both advisers coming from AMP financial Planning
• 11 licensee owners up by net 1 including Centrepoint, LFG Financial Services and both new licensees that commenced this week.

Losses This Week

• Steinhardt Holdings (Infocus) down (-6) with the loss of a major practice. Infocus are down (-22) Calendar YTD
• 6 licensee owners are down net (-2) each including Australian Unity, Insignia, Perks Private Wealth, Sequoia and the lone licensee that closed
• 18 licensee owners down by net (-1) including Capstone, Clime and Count.
• AMP group were net zero for the week but were busy hiring 3 and losing 3. AMP Financial Planning, the largest individual licensee is now down to 501 advisers.