Adviser numbers enter ‘period of decline’ after strong start

After initial strong growth in the first few weeks of the year, there have now been five consecutive weeks of decline or no growth in adviser numbers, according to Wealth Data. 

In the week to 14 March, there was a decline of seven advisers which brings the number of advisers to 15,618. 

This follows zero growth last week and losses of 23 in the preceding three weeks. 

This week, there were 22 licensee owners who had net gains of 28 advisers, and 22 licensee owners who had net losses of 29 advisers. Some two licensees commenced and two ceased. 

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There were four new entrants, following eight in the week prior. 

Colin Williams, founder of Wealth Data, said: “A slower week of financial adviser movement after a flurry of switches across licensees that occurred last week. The loss of seven brings the calendar YTD to just +3, after a solid start during the first few weeks of the year, we have now entered a period of decline.”

However, both year-to-date and financial year-to-date figures are up by three and 63, respectively.

Morgan Stanley was down by four advisers, all of whom moved to Shaw and Partners, one of the strongest growing licensees in the past year.

Morgans Group, Politis Investments and Grimsey Wealth were down by two each, and an unnamed licensee was down to zero advisers. A long tail of 17 licensees including Insignia, Fitzpatricks and PSK were down by one adviser each. 

Moving onto those licensees which have reported growth in the week, B. Moses Investment Services gained seven advisers which brought its total to 10. All 10 of these advisers are also authorised by Australia National Investment Group, which is owned by Troy Daniel Mahoney. 

A tail of 21 licensee owners were up by a net of one adviser each, including AMP Group and Fortnum.

AMP chief executive, Alexis George, previously discussed with Money Management how 2023 saw advisers look to join the licensee for the first time after a number of years of exits in the face of company troubles and regulatory changes. It is now Australia’s largest licensee ahead of Insignia and Count.

George said: “We would have still had a slight reduction in 2023, but for the first time, especially in the last quarter, we saw advice practices come to AMP. And I have to say that was a real support for what Matt [Lawler] has been doing in that space; we are seeing many more enquiries than we clearly have over the years preceding.”