Limited licensing may be dead but accountants remain focused on advice

The accountants limited licensing regime has declined by around 65% over the past 18 months but that belies the reality that accountancy firms are still venturing into the financial advice arena.

While business financial advice business brokers are continuing to point to continuing accounting interest in financial advice, the latest analysis from WealthData has confirmed the growth.

In the period between 1 June and 04 August, WealthData has pointed to adviser numbers in accounting/financial planning rising by nine but, perhaps more importantly, the addition of four new licensees.

At the same time, the number of advisers operating under the accountants limited licensing regime fell by 39.

The situation with accountancy-backed financial advisers has come at the same time as financial advisers sat the last-ever Financial Adviser Standards and Ethics Authority exam and the latest WealthData analysis covering the first week of August pointed to a minor surge in exits from the Financial Adviser Register (FAR).

Key Adviser Movements for week ending 5 August:

Net Change of advisers (-24)

34 Licensee Owners had net gains for 61 advisers

40 Licensee Owners had net losses for (-86) advisers

2 new licensees commenced and (-4) ceased

6 Provisional Advisers (PA) commenced and (-1) ceased.

Summary

A busy week with significant movement across several licensees. Also, the first big negative week for the new financial year.  However, the financial year to date remains positive at +152, while calendar YTD is negative (-771).

Growth This Week

Bombora Advice up by 10, most being ANZ advisers moving to Zurich. It is our understanding that Bombora will only hold the ex ANZ advisers for a short period of time, until Zurich finalise their own licensee arrangements. Australian Unity, up 9 with all advisers moving across from Millennium 3, (ABFS Life Practice).

Two licensees up plus 4, one being a new licensee and Fortnum who gained 2 advisers from Intas (now down to zero advisers) and 1 each from RSM and Aware Super. 4 licensee owners up 2 including Lionsgate and the Highfield Group. Thereafter, a tail of 26 licensee owners up by 1 including Viridian, Oreana, Shaw and Partners and Minchin Moore.

Losses This week

ANZ down (-12) with most moving across with Zurich to Bombora, Insignia down (-10) putting on 2 and losing 12 advisers (most moving to Australian Unity as mentioned above via Millennium 3).  AMP down (-7) putting on 1 adviser and losing 8. Of the 8 losses, 2 have been appointed at other licensees. Diverger down (-6), this was after internal switching of 4 advisers from The SMSF Expert to Merit. GPS lost 3 advisers, The SMSF Expert lost a further 2 and Merit 1.

Intas, now closed, down (-3) and 10 licensee owners down (-2) including Clime, Findex. Jason Valentine (Avana Financial Solutions) and Ord Minnett. A tail of 24 owners down (-1) including Capstone, Centrepoint and Fiducian.

Gains and Losses – Last 2 Months At Business Model Level

Last week we looked at winners and losers at a licensee owner level over the financial year period. This week we look at the Business Model level. The date range is from June 1, 2022 to Aug 4, 2022. The net losses are at (-137). This highlights how large the losses were at the end on of the financial year given that we are now positive 152 since July 1.

The greatest losses are with the Financial Planning model at (-75). In percentage terms, the greatest loss is with the Accounting – Limited Advice model at (-4.95%). 26 new licensees have commenced and 35 closed. However, at the Financial Planning level 20 have commenced and 12 have closed.