The Commonwealth Bank of Australia (CBA) has formally dropped to zero advisers following LGT Crestone’s now-completed acquisition of its advice arm.
Wealth Data’s weekly analysis of the Financial Advisers Register (FAR) saw a net decline of 10 advisers in the week ending 5 June, bringing the industry back below the 15,600 mark to 15,592.
The FAR welcomed eight new entrants, while four new Australian Financial Services licencees (AFSLs) opened shop and two ceased operations. A total of 101 advisers were active with appointments and resignations during the week.
Looking at the weekly declines, 27 licensee owners experienced net losses of 64 advisers in total. This was led by CBA Group, which has officially lost all its advisers as a result of the LGT Crestone deal finalised this week.
Namely, the wealth manager successfully completed its acquisition of CBA’s high-net-wealth personal advice business – Commonwealth Private Advice – on 2 June.
Other sales by the bank as part of advice exit include the divestment of Count Financial to CountPlus in 2019, closure of Financial Wisdom in 2020, and closing its Commonwealth Financial Planning business in November 2021.
The deal was first announced last November and has since seen approximately $5 billion in assets under advice and 38 experienced professionals, including 18 investment advisers, brought across to the firm’s national advice network.
This means LGT Crestone’s assets under advice have now grown to $40 billion, with more than 400 professionals under its wing. This includes over 138 advisers, operating nationally across its offices in Adelaide, Brisbane, Melbourne, Perth, and Sydney.
The transition was consequently reflected on the FAR, Wealth Data noted, with LGT topping the list for adviser growth this week, thanks to the 18 ex-CBA professionals joining its licensee.
Beyond CBA, Count decreased by six advisers, with all departing from its Merit Wealth licensee. None are displaying as appointed elsewhere yet, according to Wealth Data.
Entireti was down by four advisers as a result of two commencing at a new licensee and the remaining two yet to be reappointed.
Wongan Enterprises (Plandfarm Marketing) also lost four advisers, while Corey James Wastle (Verse Wealth Licensee Services) and Northaven Financial bid farewell to three advisers each.
Four AFSL owners fell by two advisers each, such as Rhombus Advisory, and a further 17 licensee owners lost one adviser each, including Sequoia Financial Group.
On the other hand, 26 licensee owners enjoyed net gains of 51 advisers in total. Following LGT’s notable growth, PictureWealth rose by three advisers – with all being new entrants.
A new licensee also commenced with three advisers and four licensee groups increased by two advisers each. A final tail of 19 licensee owners were up by one adviser respectively.
