Adviser numbers to drop to 17,200 this month

As the Australian Securities and Investment Commission (ASIC) has renewed its regular reporting on adviser numbers on its Financial Adviser Register (FAR), the expectation is the number will drop further this month to 17,200, according to Wealth Data.

And it would continue to fall thereafter, with the expectations of between 15,000 and 16,000 later in the year.

This followed a story by Money Management last week that 600 advisers left the industry during December.

Related News:

Looking at peer groups, the financial planning sector took the highest hit with a loss of 1,652 or 13%.

“This sector is in some ways a story of ‘large versus small’. The only real growth is the number of new licensees with 131 licensees opening and 47 closing - virtually all new licensees being small licensees (less than 20 advisers),” Wealth Data’s director, Colin Williams, said.

“While some of the large licensee owners who operate in this sector suffered heavy losses. Their losses are much greater than the total loss of (-12.91%) for the sector and their combined loss of 964 advisers, represents more than half the losses across the sector.”

Following this, overall the losses stood at (-14.43%), with the hardest hit in percentage terms sector being accounting – limited advice (mostly advice limited to self-managed super funds) which was down by (-36.31%)

Also, the sector was considered as the most likely to deteriorate further as more reporting would come in over the next couple of weeks. This sector also saw 121 licensees close and none commenced.

The investment advice sector, which mostly provided portfolio advice often using direct investments, held up very well through to December, but got hit hard in the last few weeks due to the result of the Financial Advisers Standards and Ethics Authority (FASEA) exam.

Overall it was down (-297) advisers or (-8.69%). However, since the start of December, it posted around two thirds of their losses in one month.

On the other hand, the best with losses of (-5.95%) was the accounting - financial planning (holistic advice, mostly owned by accounting groups) sector.

According to Wealth Data, this group was described as a relatively small sector of the market with less than 1,000 advisers, which saw a growth in the number of licensees with 15 commencing and nine closing.

Source: Wealth Data

 




Recommended for you

Author

Comments

Comments

Why do you keep reporting this stuff (other than, self promotion by Wealth Data). Who cares?? What's your point: that people are leaving - we know. Some want to blame the exodus on FASEA requirements. That may be a contributing factor when an adviser is considering retiring - we don't work forever you know. If a non-retiree adviser leaves because they didn't want to comply with FASEA, should they be an adviser anyway? - Surely those who are not leaving the industry will be better off - more clients. Its getting worse than the daily Covid numbers and predictions.

I'm with ya Donga ... on both fronts, adviser numbers and COVID.

Looks like there is no one left to comment about the abject incompetence of government and regulators that led to this disaster. Nothing in the mainstream news of course.

Dear Patrick and Jon @ Joint Parliamentary Committee on Corporation and Financial Services,
cc: Jassmyn @ money management
In respect to qualitative legal research into Financial Planner's sector demise, it should begin with a quantitative measure for a national population of 25+ million, compared to the number of qualified on ASIC's Financial Adviser Register fell from 24,000 to 17,200 since 2018 implementation of ASIC Industry Levy, ASIC's banning adviser culture that avoids restorative justice rehabilitation, FASEA ethics exam failure rate by pseudo academics and Legislative abuse of financial planners following the Hayne Royal Commission ...
The Minister thinks roboadvice ... ? The computer systems of financial institutions is the above the Law and full of errors, taking up 25% of my time, uncompensated.
It all adds up to a microprudential failure in Domestic Governance.
The causers married couple of the STORM FINANCIAL failure that caused huge losses in household wealth that was funded by greedy banks, received a fine from the Federal Court of $174,000. All caused initially by ASIC failure in supervision that was caused by Government's inadequate funding of ASIC - failure by politicians - goes around in circles and repeated again with the ASIC Industry Levy on financial adviser register to reimburse ASIC LITIGATION and ENFORCEMENT costs against financial institutions and when financial institutions pay up, it goes into Treasury Revenue, not to compensate financial adviser register litigation funding of ASIC. It is really dirty politics.
The next pathetic joke is the Australian Law Reform Commission - this is really pathetic - has been asked to review the legal definitions in financial services Legislation - again, this is another microprudential failure in Domestic Governance. It reminds me of resorting the placement of deckchairs on the Titanic as it is sinking.
Ross Smith
Director, Shenton Pty Ltd [AFSL 345470]
Director, Shenton Ltd [AFSL 342895] (Hong Kong)
PhD Candidate, Law Faculty, University of Hong Kong "Private Equity: The Challenge of New Legal Frameworks" - on the microprudential economic allocation of coordination rights.

Did you actually send this to Patrick and Jon or just post it here?
Either way, I doubt they will be overly concerned.

Add new comment