Large licensees lose 251 advisers to micro-AFSLs

Mike Taylor

Managing Editor/Publisher, Financial Newswire

5 May 2023

More than 250 advisers now working for so-called “micro-licensees” where previously working for large licensees, according to the latest analysis from WealthData.

The analysis highlights the degree to which the financial planning profession has shifted from one dominated by large dealer groups to one which a third of advisers are working under licenses with four or fewer authorised representatives.

WealthData principal, Colin Williams said that in terms of migration to micro AFSLs Insignia had lost 72 advisers, followed by WT Financial Group at 55 and AMP and Centrepoint, with only 15 lost advisers.

However he noted that the large licensee owners might still have a relationship with the ‘lost’ advisers by providing services to the micro AFSLs.

“Licensee owners with 100 or more advisers have lost a total of 251 advisers to the new micro AFSLs. Surprisingly, licensee owners with less than 20 advisers have lost 82 advisers to this segment. Overall, there has been a total movement of 403 lost advisers to this segment,” Williams said.

“In our Accounting – Financial Planning model, Insignia tops the list with 19 lost advisers, with 18 of the 19 advisers leaving their Lonsdale licensee. WT Financial Group comes in second with 5 lost advisers, followed by AMP Group with 4. The total movement of advisers lost to this segment is 55.”

Key Adviser Movements This Week:

• Net Change of advisers up by (-10)
• Net Change of +49 for 2023 Calendar YTD
• 22 Licensee Owners had net gains for 28 advisers
• 25 Licensee Owners had net losses for (-40) advisers
• 1 new licensee and 2 ceased
• 11 New Entrants
• Number of advisers active this week appointed / resigned: 71

Summary
A busy week of movement with 11 new entrants helping to cushion a large number of resignations.

Growth This Week

• Count Group up by 3 with 2 advisers joining their recently acquired licensee Affinia, 1 from Morgans the other from Infocus. The remaining adviser joined Count after a few years away from advice.
• Four licensee owners up by +2 including Diverger with both advisers joining GPS Wealth. The other 3 licensee owners who also picked up 2 advisers each, are small licensees including Allman Partners who hired 2 new entrants.
• 17 licensee owners up by plus 1 including Viridian Group, Shartru, Bombora and Amodio Financial Services.

Losses This Week

• Insignia lost (-7) advisers, only 1 showing as being appointed elsewhere. This brings insignia advisers numbers 1,034 – inching closer 1,000.
• Politis Investment Strategies down by (-4) and only 1 showing as being reappointed elsewhere.
• WT Financial also down by (-4), only 1 of the 4 being appointed elsewhere.
• Three licensee owners down by (-2) including Centrepoint who appointed 4 and lost 2.
• 19 licensee owners down by (-1) each including Fortnum, Fiducian, Morgans, and AMP Group.