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One micro-advice AFSL closes for each one that opens

Mike Taylor12 April 2024
Man jumps between cliffs

The number of micro-licensees in the financial planning profession has been growing but it represents a highly volatile segment, according to the latest analysis from WealthData.

The data reveals that for every micro-AFSL that is established, half are likely to close.

WealthData principal, Colin Williams said that in financial year to date terms, 101 micro-AFSLs had commenced, but 54 had closed.

But another dynamic revealed in the analysis is that financial advisers who lose their jobs as a result of a micro-AFSL closure, are more than likely to look for employment at another small licensee rather than moving to one of the larger dealer groups.

Key Adviser Movements This Week:

  • Net change of advisers zero
  • Current number of advisers at 15,595
  • Net Change Calendar 2024 YTD (-21)
  • Net Change Financial YTD +40
  • 21 Licensee Owners had net gains of 25 advisers
  • 16 Licensee Owners had net losses for (-26) advisers
  • 1 new licensee and (-2) ceased
  • 4 New entrants.
  • Number of advisers active this week, appointed / resigned: 57.

Growth This Week – Licensee Owners

  • Sequoia Group bounced back after some recent losses with a net gain of three advisers. Through their Interprac licensee they hired four advisers, all from different licensees and lost one adviser who is not showing as being appointed elsewhere.
  • A new licensee commenced with two advisers. The founder is ex Havana Financial Services and the other adviser coming back into advice after a break of some five years.
  • Morgans Group also up by net two advisers, with one adviser coming back after leaving Morgans for a month, and appointing a new entrant.
  • 18 licensee owners were up by net one each including:
    • WT Financial Group who hired the last remaining adviser at Affinia and another adviser from RI Advice, and lost one adviser to Interprac.
    • Cobalt Advisers and Beryllium Advisers, who work closely together, both up net one each. Cobalt getting their adviser from Fortnum and Beryllium gaining their adviser from United Global Capital. Over the last 12 months, Cobalt is up by five advisers and Beryllium is up by 12.

Losses This Week – Licensee Owners

  • Count Ltd were down by (-5), losing six advisers and hiring one. Of the six that left, only one is shown as appointed elsewhere. As noted above, Affinia is now down to zero advisers.
  • AMP Group lost five advisers, only one at this stage being appointed elsewhere
  • Bannister Consulting (Sira Group Lic), down by two, with one adviser commencing his own AFSL a couple of weeks back
  • Fortnum also down by two, both not showing as being appointed elsewhere
  • A small tail this week of only 12 licensee owners down by net 1 each, including Centrepoint, Lifespan and Viridian Group.
Mike Taylor

Mike Taylor

Managing Editor/Publisher, Financial Newswire

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25 days ago

The headline says one closes for each one that opens, but the numbers say 54 closed and 101 commenced. Are the headlines being written by dodgy AI now?