Insignia outpaces AMP with over 100 adviser losses

Insignia has seen 24 adviser losses in the last week, bringing its total losses for the year to a notable 112, according to Wealth Data.

This is almost three times the losses at AMP, which stand at 40 for the calendar year.

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In the week to 21 September, the industry saw a net change of -30, bringing the current number of advisers to 15,679.

There has been a net change of -119 for the calendar year to date and a positive change of 116 for the financial year to date.

The losses at Insignia were driven by their licensee Bridges, a salaried licensee, which saw 23 advisers come off the ASIC Financial Advisers Register, the research firm said. 

“At this stage, none are showing as being appointed elsewhere, and we are not sure if they have been ‘let go’ by Insignia or being transitioned,” explained Colin Williams, Wealth Data founder.

“Insignia via Consultum did authorise two new entrants [though] the losses are mounting. 

“As disclosed by Insignia a short while ago, they are re-evaluating their advice offer, and we can expect further disruption over the coming weeks/months,” he remarked. 

In July, the firm announced a partnership ownership model structure called Adviser Services Co (ASC) that will have a strong mandate to grow advice practices and advisers operating under its licences as Insignia seeks to become Australia’s largest adviser-owned licensee group.

ASC will be a partnership ownership model for self-employed licensees comprising RI Advice Group, Consultum Financial Advisers and TenFifty, headed up by current Insignia chief advice officer, Darren Whereat, as chief executive. 

In its most recent financial results, the firm said it had 1,413 advisers in its network and 461 practices, down from 1,600 in June 2022. Insignia attributed the downturn to regulatory change, the closure of the Lonsdale licensee, the departure of two member practices and the reshaping of the Bridges business. 

Last week, 26 licensees had net losses of 60 advisers. 

FinancialLink Group (NextGen) was down by seven and now only has 11 advisers. The firm had already seen double-digit losses for two consecutive weeks earlier this month. 

Meanwhile, FSSP (Aware Super) was down by six, and none of the advisers are currently shown as appointed elsewhere. 

Williams noted: “The losses at FSSP have contributed to the super fund model as having the greatest losses in percentage terms YTD at (-5.31 per cent). The advice market in total is down by (-0.75 per cent).”

A tail of 23 licensee owners were down by one each, including AMP Group, Diverger, Fiducian and WT Financial Group.

There were 10 new entrants to the industry, and 23 licensees had net gains for 30 advisers. 

Sequoia Group was up by net three, with all advisers joining its InterPrac licensee. This included two advisers from NextGen (FinancialLink Group) and an adviser returning after a break.

Centrepoint was also up by two, one moving across from NextGen and the other from Consultum.

Some 18 licensee owners were up by net one each, including Morgans, Guideway and AIA.

A new licensee commenced with three advisers, after the practice left Merit Wealth.

Templestone was up by two, with both advisers moving across from NextGen. Similarly, Plan 2 was also up by two advisers, though both were new entrants.