Experience pathway certainty crucial to stabilising adviser numbers
There has been further confirmation that financial adviser numbers have stabilised, but the next significant round of exits is likely to be generated when the Government finally reveals the fine detail of its “experience pathway”.
The Government is expected to reveal those details within weeks with consultations around its financial adviser education requirements having closed on 16 September and with the Quality of Advice Review final report due out by the middle of December.
In the meantime, the adviser exits which have been a feature of the financial planning profession over the past two years have modestly reversed, with WealthData’s analysis revealing more than a month of stability turning into modest growth.
It found the adviser numbers on the Financial Adviser Register (FAR) grew by seven this week, with five new Provisional Advisers.
However, a continuation of this stability may be undermined when details of the Experience Pathway are revealed, with advisers telling Financial Newswire that they have placed their careers strategies on hold until the Government delivers some certainty about education requirements.
As well, WealthData principal, Colin Williams, pointed to the reality that the Christmas/New Year period also traditionally generated an upturn in adviser exits as older advisers opted to retire.
Key Adviser Movements This Week:
Net Change of advisers +7
29 Licensee Owners had net gains for 32 advisers
17 Licensee Owners had net losses for (-23) advisers
2 new licensees commenced and (-1) ceased
5 Provisional Advisers (PAs) commenced and none ceased.
Summary
The number of advisers rose above 15,900 as some advisers made their way back to the ASIC FAR, along with another good week of new entrants coming on as Provisional Advisers. The adviser market has certainly steadied since the wave of losses post the Financial (FASEA) Exam that we saw in early October.
Growth This Week
At the licensee owner level, it was a was steady with 6 owners increasing by a net of 2 advisers. The list includes Telstra who had 2 advisers coming back into advice after a short break, MWL Group picking up 2 from AAN Wealth, Highfield Group picking up 2 from NEO Financial Solutions, but both are still showing as still current at NEO, suspect this is temporary.
CHPW Financial also up two with one adviser from KDM Financial and the other from Bell Potter, who is still showing as current at Bell Potter. Boston Reed also up 2, however, this seems to be due to some internal movement which caused the numbers to jump around over the last 2 weeks. A new licensee commenced with 2 advisers (full details given to members) who moved away from Synchron, part of WT Financial Group.
20 licensee owners are up net 1 including Viridian and Steinhardt (Infocus) with new Provisional Advisers. Insignia up a net 1, putting on 2 advisers and losing 1. Fortnum also up by 1 hiring an adviser coming back after a break.
One new licensee commenced with 1 adviser.
Losses This Week
WT Financial Group are down (-4), all losses at Synchron. This is the third week in a row that WT Financial top the losses for the week and are now down 12 for the past 3 weeks. Diverger down (-3), all from Merit Wealth. AMP Group down (-2), picking up 2 advisers at Charter but losing 4 at AMP Financial Planning. A tail of just 14 licensee owners down (-1) including Centrepoint, Chris Brycki (Stockspot), Sequoia and Perpetual. The lone licensee that closed had only the 1 adviser.
Gains and Losses Since Jan 1 2022 – Dashboard 2A Adviser Fast Facts
Count still lead the way calendar YTD with plus 33, followed by Industry Funds Holdings at 25 and PSK at 23. As for losses, Insignia at (-173), AMP Group at (-157) and WT Financial Group at (-107).
Really impressive?!! A whole 7