Two of Australia’s largest financial advice licensees, Count Financial and AMP Group, have lost five advisers each this week.
Research house Wealth Data found that in the week ending 11 April, Count hired one adviser and lost six, while AMP bid farewell to five advisers. Only one exiting adviser from each firm has been appointed elsewhere.
In the past four weeks since 21 March, Count has declined by 20 advisers and AMP has lost nine advisers.
The research firm revealed last week that Count has lost the greatest number of advisers this financial year-to-date at a decline of 59 advisers (as at 4 April). However, Wealth Data founder Colin Williams stated that the firm is carrying the losses for firms it has purchased, including Affinia and licensees associated with Diverger.
This week to 11 April saw a net zero change in adviser numbers, with the industry remaining at 15,595 advisers. Wealth Data reported a loss of 14 advisers last week which caused the industry to fall below the 15,600 mark.
Some 57 advisers were active with appointments and resignations across the week. Meanwhile, four new entrants joined the advice sector.
Examining the weekly declines, 16 licensee owners had net losses of 26 advisers in total. Following the losses at Count and AMP, both Sira Group and Fortnum Private Wealth lost two advisers each.
A smaller tail of 12 licensee owners were down by net one adviser each. This included Centrepoint, Lifespan Financial Planning and Viridian Group.
Simultaneously, 21 licensees had net gains of 25 advisers in total. This was led by Sequoia Group which “bounced back after some recent losses”, Williams noted, with a rise of three advisers.
“A new licensee commenced with two advisers. The founder is ex-Havana Financial Services and the other adviser is coming back into advice after a break of some five years,” Williams said.
Morgans Group also grew by two advisers, while 18 licensee owners were up by net one each. This included WT Financial Group, which hired the last remaining adviser at Affinia that now has zero advisers since Count acquired the firm last year.
My view is that after 2026 there will be quite a bit less than 10,000 ‘advisers’ (investment advisers) and less than 100 pure risk specialists. The experienced investment advisers and specialist risk advisers who saw the writing on the wall (legislator stupidity, culpability and unreliability) back in 2020-21 have been biding their time. Even with the clause saying full uni degrees are not required for the 10 year+ advisers there’s little incentive to stay. With unnecessary compliance idiocy soaking up valuable client-facing time and the unsustainable level of commissions for risk advisers. This is not to mention the substantial risk of persecution for the simplest oversight in advice or paperwork. Why would any sane adviser wish to keep doing this under these circumstances? The super funds have really done well to get the legislators and special interest lobby groups to make it so advisers are driven out. This is as plain as the nose on your face – super funds being given much more latitude in giving advice (there’s MORE to come), this new ‘class’ of ‘adviser’ the politicians have created and the continuing increase in red tape (thanks Jones!) all add up to push advisers OUT and keep new entrants OUT. The super funds can soon have it all!