The missing 4,557 potential adviser cohort
There are currently 4,557 people who have passed the financial adviser exam but are not practicing, according to the latest analysis from WealthData’s Colin Williams.
Williams has suggested that this cohort of people cannot be ignored in terms of the possible growth in numbers on the Financial Adviser Register (FAR) as the profession heads into 2025.
If those 4,557 people were added to the FAR current adviser numbers would be above 20,000 but many have exited the profession or had no intention of practicing.
According to the latest numbers derived from the FAR, there are currently 118 fewer advisers registered than at the beginning of the year, albeit that there has been growth of around 164 advisers since 30 June.
Williams noted that with the November Financial Adviser Exam numbers in, a total of 225 adviser have passed the exam in 2024 and he expected that many of those successful candidates would show up on the FAR soon.
Key Adviser Movements This Week:
- Net change of advisers +3
- Current number of advisers at 15,507
- Net Change Calendar 2024 YTD (-118)
- Net Change Financial YTD +164
- 18 Licensee Owners had net gains of 22 advisers
- 16 Licensee Owners had net losses for (-19) advisers
- 3 new licensees commenced and none ceased
- 12 New entrants
- Number of advisers active this week, appointed / resigned: 65.
Growth This Week – Licensee Owners
- Four licensee owners up by two:
- Entireti Limited A busy week for the group. The positive movement was due to two advisers switching to Personal Financial Services from Havana Financial Services, owned by O & Z Pty Ltd. In addition, thirteen advisers switched (internally) from Personal Financial Services to Fortnum, hired one new entrant and lost one AMP Financial Planning adviser.
- Bell Financial with both being new entrants
- AD Financial Services, one new entrant and one advisers gained from Samuel Allgate Investments
- A new Licensee commenced with advisers from Advice Evolution
- 14 licensee owners up by net one each including Templestone Financial Services, Ord Minnett Group, Lifespan and the remaining two new licensees.
Losses This Week – Licensee Owners
- Three licensee owners down by two each:
- Independent Financial Advisers Australia, both advisers left to commenced their own licensee detailed last week
- O & Z Pty Ltd (Havana Financial Services), both advisers joining Personal Financial Services attached to Entireti
- Rhombus, one adviser leaving Consultum to join Nextplan Financial and one leaving RI Advice who is yet to be appointed elsewhere.
- A tail of 13 licensee owners down by one each including Alteris Financial Group, Infocus and WT Financial Group.
I would be one of that cohort of 4557 advisers. Fully qualified in every aspect. Degreed; CFP, completed the extra Kaplan Ethics and professionalism course, SMSF accredited…but please don’t anticipate my return anytime soon.
Firstly, I’ve sold my practice a year ago that was built up from scratch over twenty years. I’ve restraints of trade to adhere to now.
More importantly, I do check in to see what nonsense our Government politicians and regulators keep dreaming up to constantly remind me and that add further confirmation as to why I left the industry.
It has been a good decision and I’ve not had a day of regret.
I keep in touch with many of my clients and they too will often initiate a call to see how I’m doing. I cannot say the same for any of the suppliers or organisations I supported during my twenty year career. I find that disappointing.
As has been said before, fill a bucket with water, insert your hands and arms into the water. Now remove them, the hole that remains is the measure of how you’ll be missed…
I’m one of those 4000+. I sat the exam to ensure the ability to continue to practice should that be necessary. Fortunately, I was able to sell my practice and have subsequently retired. Given the ridiculous nature of the compliance environment, there is no way I would consider returning to practising again as a financial adviser.
I too have completed everything ! Just in case ? I am on the cusp of that decision and have been for sometime I live in hope I guess that things will change and start to sound normal again! I just tilt now further to the retirement window as one idiotic idea is replaced with another. Why did I do all this work and study when we are now on that cusp again of a “ new adviser type” typical government reality ! Piss off 10,000 qualified advisers with stupid legislation then replace them with yet another stupid idea ? Why ? To not look stupid !! Hopeless !
I am one of those advisors as well. I am not looking to return anytime soon. Running a small FSP in the current regulatory environment is extremely stressful. The costs of new regulation, the introduction of new levies at every turn, a government who essentially treats advisors as guilty until proven otherwise, and a regulatory system that thinks a falling stock market is a criminal offence is soul destroying.
Every person that I know, which would be more than 20, that has completed all the FASEA exam requirements has absolutely no intention of returning to being a financial adviser. It’s a crap occupation being controlled by people who only want to make it worse.
Spot on.
Like the others commenting, I’ve passed the exam, have 30+ years of experience and tertiary accreditation…. but am counting down the days till I retire. Cant wait to get out, over regulation and overburden of absurd compliance is strangling the industry, at a time when there is more money and migration of wealth in the system than ever before and more need for good advice. Add to that the high levels of direct and indirect tax in trying to run a profitable and sustainable business…..the government is killing us slowly.
Can understand why those 4000 opted out.
I am not one of the 4557 but after >25 years advising retail clients decided that the time spent in studying to remain “qualified” was a complete waste of my time, especially as I approach retirement in +/- 5 years. Instead, I suspect I am one of thousands who only deals with sophisticated &/or wholesale investors, where I can concentrate on providing outstanding investment advice, without all the bullshit compliance that weighs down every retail adviser, forcing many to leave the industry.
Entire firms now have this business model & yet, for some bizarre reason given that some 20% of adults in Australia now qualify as sophisticated / wholesale, we are completely ignored.
When is anyone going to start talking about this subset of advisers, most of whom (in my experience) are outstanding advisers with decades of experience ?
Interesting comments on here. While I do sympathize with the sentiment expressed, a few observations:
Yes, I commiserate, we have it so terribly bad, don’t we? I can see why so many ran away crying that the sky is caving in…
(Ken, I’d urge you to reconsider and look at what is in front of you with fresh eyes, the potential for the profession and as a business owner – I am assuming you are – has literally never been brighter with less real competition out there.
I hear what you are saying but truly have you seen a bigger mess than what has been developed and thrown at us over the past 10 years. It’s gone from an attempt to “weed” out the misfits to an unworkable situation for many with the cost of advice being just one issue. The removal of many Superannuation commissions! Not based on advisers receiving something from so called “no advice” or for the client to get a better deal! Simply to put more money in the pockets of The Super Funds. And the pockets of their boards. The same could be said about the reduction of the risk commissions to an unacceptable 60% with a more outrageous 2-year responsibility period. The only good thing here {and was hung out like a carrot} was the 20% renewal. It’s simply not workable! particularly when underwriting comes out and asks for more unrealistic detail {on what should be an easy assessment of a new case} because they are terrified of making a logical decision that might cost them their job. Back we go” time and time” again to finally get it across the line and then hold your breath for the next 2 years. Premiums have blown out of control and was told just today that another well-known Insurer is increasing rates by 18% in the new year. Why?? to transfer people into the new Inferior products. Who’s really winning here?? Not what we nor our clients want to hear or can afford.
I think a lot of the advisers’ decisions can also be based on what we have seen in the past and what looks like continuing in the future. I could give you a dozen more stupid decisions made by government and insurance moderators that have impacted what was, a wonderful and fulfilling industry but I think we get the picture.
With all due respect I have looked at this with “Fresh Eyes” and I simply see nothing in the future to be excited about. apparently so did 4000 others.
RTQ, I don’t disagree with anything you said, but that is based solely on the presumption you need to have risk as part of your services. Ludicrous, let it go. We have no ‘higher calling’ (haha, refer below post) to provide that service as a public benevolent group, if the Gov has created a mess and it will affect so many Australians, well it’s their responsibility to fix it, not yours. Drop it like we did years ago and focus on where people are screaming for your services but also have the ability and willing tp pay for it, investment, super & retirees – the figures on people who need good solid advice are astounding.
And honestly, even if at the moment that is only a small part of your book or your current skill set isn’t high in those areas, it is worth the small effort taken to get better (you do not have to be great or have instantaneous answers for clients, just be diligent, ethical and offer good service and it is a pathway to succeed). Also, get out there and purposefully meet local accountants and lawyers who have clients asking them questions they can’t answer, especially if you’ve been in business for a number of years as they would trust you know what you’re doing. I’ve even counselled other local planners (not in our firm, we don’t see them as competition because there are so many clients & potential clients needing assistance), exactly on this and helped them get over the hump and redesign how they do things, pity the FAAA doesn’t have this service.
I think you may have failed Empathy 101.
In addition, there are so many holes in your post, I wouldn’t know where to start.
At best, your opinion would be an outlier (you know – beyond 2 standard deviations and all that stuff 🙂
“So many holes”? Hilarious, your powers of logic, persuasion, debate, staying power, focus on task, and laziness are obviously exemplifying your commercial ability & business savvy, judging by your amazingly detailed post. And yet here am I doing every part of my original post in a highly successful growing firm, about to take a nice Xmas break before doing it all again 🙂
And yes, I must have missed entirely the FASEA Standard 13 Empathy IOI (clearly stands for the Incompetent, Obtuse & Ill-advised planners who exited when we’re on the cusp of a hugely profitable era). Happily failed that one, leave that to the Moaning Myrtles and bleeding hearts who love a little bit of mutual self-martyrdom spiced with self-pity and ever-outward finger pointing. (Though to be fair the only ones I do feel sorry for are the few and far between professional and ethical insurance/risk only specialists when that commission rort screwed them over, anyone else who had other skills but didn’t know how to pivot, not so much).
And your attempt at quasi-higher IQ stuff throwing in standard deviation nonsense, love always being different as the most successful people are never the majority – you know that outlier stuff you mention. Besides, as Benjamin Disraeli is often attributed saying, “Public opinion is a poor substitute for character” or perhaps more appropriate for this particular discussion, Henry D. Thoreau’s
“Public opinion is a weak tyrant compared with our own private opinion. What a man thinks of himself, that it is which determines, or rather indicates, his fate.” (I can explain either or both if you’re having yet more comprehension issues).
But I would love to keep this debate going, please oh-almighty-wise-sage, pray tell please illuminate this lowly fool on the erroneous aspects of my original post, (if you have the energy old boy), I need another chuckle for a Monday. Be ideal if you could have your highly educational piece ready by say 12pm AEDT as I’ll have finished my meeting with my multi-million dollar retirees by then, thanks HC bud.
Hello, ‘Higher Calling’…? No reply, crickets only? Yawn emoji!
I agree with a lot of what you said here, just remember anyone who works in a roof made that decision themselves. If they wanted to work inside with us they have the same opportunities and career paths to make it happen. But I do agree blokes on rigs make the world go round and I am sure thankful for that, as it allows us to do what we do. Such is the economy … One thing that is very much a shame is making risk advice as difficult as it is. Forcing advisers away from risk and into the arms of the product providers will only make outcomes further negative.
A great portion of advisers with no or outdated educational qualifications that were being forced out of the industry sat the exam merely to prove to others they could pass the exam.
Once passed, some couldn’t be bothered at age 60 plus to a spend a mere 5 weekends and $3,000 to get a Diploma, so they sold up and moved out. This is coming from a Jerk like me in my mid 50’s now having a Masters Degree (I still have my course notes unwrapped only to read the actual assignment. What a waste that was)
These 900 guys sat the exam and sold up…prematurely with hindsight I would add, given the 10 year exemption came in. The other 3100 that sat are of course the sales reps in dealer group land and they make 3 times the wages of advisers, so why would they want to get into face to face advice.
What a mess, a waste of life lost, and merely an exercise in getting rid of some quite highly capable great advisers, whilst protecting the Directors of CBA (remember that scandal) ASIC and the FAAA still have a lot to answer for that mess of a period. What a joke it was.
I’m not F*cken leaving!