FASEA exam underlined 3 bleak years of exits
In the three financial years between 2020 and 2022 8,886 financial advisers exited the Financial Adviser Register, a period which neatly coincides with the timetable for passing the Financial Adviser Standards and Ethics Authority (FASEA) regime.
Analysis undertaken by WealthData confirms that 3,760 departed the register in 2020, 2,447 departed in 2021 and 2,763 departed in 2022. With the 2022/23 financial year having just ended it appears the number of exits stands at 607.
The exit pattern reflects the FASEA exam deadline arrangements in circumstances where the time allowed to advisers was first extended by a year to 1 January, 2022, and then extended to 30 September, last year. The exam deadline was always recognised as the major factor driving adviser decision-making and the data across three financial years confirms this.
According to this week’s WealthData analysis, adviser exits from the FAR appear to be restabilising following a minor surge towards the end of last month.
WealthData principal, Colin Williams noted the flurry of movement over recent weeks affecting around 275 advisers but said that there had been a return to normality this week with 87 advisers either resigning or being appointed to the register.
Key Adviser Movements This Week:
- Net Change of advisers, up by +8
- Current number of advisers at 15,707
- Net Change of (-91) for Calendar YTD
- 32 Licensee Owners had net gains for 48 advisers
- 69 Licensee Owners had net losses for (-37) advisers
- 5 new licensees and (-2) ceased
- 13 New entrants
- Number of advisers active this week, appointed / resigned: 87.
Growth This Week – Licensee Owners
- Sequoia up by net 5. All advisers joining their main licensee Interprac. Three of the advisers coming across from MWL Group and 2 from RM Capital.
- Diverger jumped back to 400 advisers, up by 4 advisers, with 3 joining GPS and 1 joining Paragem. All 4 advisers came across from different licensees
- A new licensee commenced with 4 advisers. A practice leaving Viridian
- Mercer up by net 3, all coming from different licensees
- Castleguard Trust (Lifespan) also up net 3, and again all 3 from different licensees, with 1 adviser coming back after a break of some 3 years.
- Two licensee owners up by 2 which included a new licensee and Fortnum, who picked up both advisers from Matrix, owned by Centrepoint.
- 25 licensee owners up by net +1, including PSK Group, Macquarie, Evans Dixon and Bombora.
Losses This Week
- Viridian down (-4) after a practice commenced their own AFSL
- RM Capital down (-2), as mentioned above, joining Sequoia
- Mancell Family Trust (FYG Planners) also down by (-2), both advisers showing as ceased
- 27 license owners down (-1) including AMP Group, now sitting on 900 advisers, ANZ Bank and Insignia. Both closed licensees also down by (-1) each.
- WT Financial Group also down by (-2), losing 3 and gaining 1.
- A tail of 27 licensee owners down (-1) each including; AMP Group now down to 900 advisers, Centrepoint, Insignia, Perpetual and Picture Wealth.
Reminds me of the COVID number counting, riveting stuff!
Passed the re-examination amongst the chaos, then looked at the sector harassment from policy and regulator “interference” plus shortsighted report after report, cost increases and other influences plus ever-increasing AFSL overheads.
WHY remain in a service sector the regulators seem to aspire to kill off?
Discussion with colleagues indicates a lot of people made similar decisions
Out in a matter of weeks myself for the reasons you’ve listed.
There were a significant number of people who left the industry during the period mentioned all of whom had passed the FASEA exam. Some, like myself would have been able to continue without needing the ‘Jones’ exemption but have chosen not to.