More advisers exit the FAR

Mike Taylor

Managing Editor and Publisher

23 June 2023

After appearing to stabilise and notwithstanding the looming implementation of the ‘experienced pathway’ financial advisers are continuing to exit the profession, with numbers down by 17 in the past week.

The latest analysis from WealthData reveals that number of advisers to cease on the Financial Adviser Register (FAR) so far this year has now reached 438 – a disappointing outcome in circumstances where it was believed exits may have continued to taper off.

WealthData principal, Colin Williams noted however that the impact of the exits this week had to be measured against 13 provision advisers commencing.

Key Adviser Movements This Week:

• Net Change of advisers, down by (-17)
• Net Change of (-21) for 2023 Calendar YTD
• 19 Licensee Owners had net gains for 24 advisers
• 29 Licensee Owners had net losses for (-46) advisers
• 2 New licensees and (-2) ceased
• 13 Provisional Advisers including 12 new entrants and 1 prior adviser restarting a career in advice
• Number of advisers active this week, appointed / resigned: 83.

Growth This Week

• A new licensee commenced with 3 advisers, 2 being provisional advisers. All advisers were initially at Synchron now owned by WT Financial
• Three licensee owners up by net 2 including AMP Group who hired 3 including 1 new entrant and lost one adviser. Australian Retirement Trust also up by 2 along with a smaller licensee owner Fraser Holt (RDL Financial Group) who hired two new entrants.
• 16 licensee owners up by net 1 each including NTAA (SMSF Advisers Network), Morgans, and WT Financial Group.

Losses This Week

• Licensee owners Robert Purcell (Novatax) reduced to zero after the remaining 8 advisers left. Most had commenced earlier this month at ‘Newadvice’ licensee, and it took a few weeks to for the advisers to be removed from Novatax licensee
• Insignia down by (-6), losing 7 and appointing 1 new entrant. Of the 7 that ceased, 2 have moved to Paragem, owned by Diverger and 1 to Alliance Wealth owned by Centrepoint
• Five licensee owners down by (-2) including Shaw and Partners, Fortnum and Bell Group
• A long tail of 22 licensee owners down by (-1) including Diverger who hired 2 but lost 3. Others down by (-1) include Fitzpatricks, Industry Super Holdings, Capstone, Oreana and Perpetual.