Super funds the laggards in new adviser recruitment
Submissions to the Quality of Advice Review (QAR) may have identified superannuation funds as a key vehicle for delivering affordable financial advice, but new data analysis reveals they are amongst the slowest and lowest recruiters of new financial advisers.
The new analysis from WealthData reveals that when it came to recruiting new financial advisers, superannuation funds accounted for just three of 336 new recruited last year, compared to 233 recruited by full-service financial planning licensees and 77 recruited by investment advice licensees.
Accounting-based practices accounted for 23 new adviser recruits.
WealthData principal, Colin Williams also noted that small-to-midsize licensees had more than pulled their weight with respect to new advisers, more than matching it with the larger licensees.
Key Adviser Movements This Week:
Net Change of advisers +18
Net Change of plus 47 for the start of the new year
36 Licensee Owners had net gains for 45 advisers
23 Licensee Owners had net losses for (-26) advisers
1 new licensees and (-2) ceased
7 Provisional Advisers (PAs) commenced and none ceased.
Summary
A solid week of gains through a combination of new Provisional Advisers and advisers coming back into advice.
Growth This Week
AAN Wealth experienced an increase of five advisers, with two of them being Provisional Advisers and the remaining three returning to the field after taking short breaks. Similarly, HESTA saw an increase of three advisers, with two of them coming from Link Advice and one returning to the field after a break.
Three license owners also saw an increase of two advisers each. NGAA (Next Generation Advice) added one adviser each from AAN Wealth and Money Sherpa, while Insignia added three advisers, including one Provisional Adviser at Lonsdale and lost one adviser at Shadforths. Castleguard (Lifespan) also gained two advisers, one from Whittle & Skok and the other returning after a short break.
A total of 32 licensee owners saw a net increase of one adviser each, including Politis, Bombora, AMP and Industry Super Holdings, as well as a lone new licensee that recommenced operations after ceasing all advisers in 2021.
Losses This Week
Count losing two advisers, one of whom joined WT Financial group’s licensee Synchron. James Wright (Sayers Wealth) and Sequoia also lost two advisers each. A total of 31 licensee owners lost one adviser each, including Capstone, Integrity Financial Planners, Shaw and Partners, and WT Financial Group, who had a busy week, hiring three advisers and losing four. Both licensees that effectively closed were one-adviser models.
Why would they employ financial advisers when they can do it all through their call centre via intra fund advice / general advice?