Advisers exiting, licensees closing down

Although this week’s analysis has confirmed an ongoing exit of advisers from the industry, with 205 adviser roles lost year to date, it is happening at a slower pace compared with the last year as the number of adviser roles ceased during the first quarter of 2020 stood at 761, according to HFS Consulting’s analysis. 

At the same time, 19 licensees closed down, resulting in the loss of 49 adviser roles, while 31 new licensees commenced giving a net gain of 77 roles. 

HFS’ director, Colin Williams, said that the 77 roles for new licensees overlapped with the same number as the top eight licensees of growth. 

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This week saw a drop in a number of actual advisers by 47 to 20,417, with 55 adviser roles being appointed and 95 roles slashed, but 22 licensees managed to make net adviser role gains and five existing licensees saw gains of two roles. 

However, 50 licensees saw net adviser losses for the week, with AMP Financial Planning and Apogee both losing a net nine roles each, Hillross was down six roles and was followed by QInvest and Financial Services Partners which were three roles down each. 

Additionally, a total of five licensees effectively closed for a total of eight (-8) roles.  

“All licensees that closed were licensees attached to accounting firms. A common theme for quite a while now, is the closure of licensees attached to firms whereby financial advice is not the main priority,” Williams said. 

 




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Accountants have figured out that they can give as much financial advice as they like without being licensed. Being licensed attracts ASIC attention. Not being licensed ensures ASIC will ignore you, and you can get away with all sorts of dodgy stuff.

ASIC sees its role as licensed provider persecution, not consumer protection. It's one of the many reasons ASIC should be shut down and replaced with a genuine consumer protection agency.

Yep - every accountant I've come across feels entitled to make superannuation/contribution recommendations. Grinds my gears to no end.

hmmm, but if one of these do ever get the attention of ASIC or media for a wrong-doing, I wonder if they'll be identified as an 'accountant' or an 'ex-adviser'...

ACCOUNTANT GIVES UNLICENSED ADVICE ON SUPER
or
EX ADVISER ILLEGALLY GIVING UNLICENSED ADVICE ON SUPER

Perhaps the Oksana Patron could tell us which heading she'd run?

Just wait until the multiple FASEA fails realise that they can't cut it. There will be a rush to the door just before January 1 and a swag after, when they lose their legal ability to give any advice. I think I read about 12,000 have passed and even with a rush to get tested near the end of the 3 year warning period , there will be a lot that are sitting the exam for the first time who will fail. Their options to re-sit are disappearing fast. 4 more left this year..

Yep and I can easily think of a number of people who have passed the exam that have no intention of being an adviser - compliance people, para-planners and managers to name a few

The exam numbers tell the real story. Huge numbers haven't done it and haven't even registered

The Accountants are going back to setting up SMSFS only, but reverting to payment for general advice "on the sly" via their normal accountancy bills. Smart. They also know there is a shortage of local accountants, so they are ramping up their general accounting bills as well.

Not smart; illegal, unethical and not held accountable by the regulator. That evil pack of $#%^ /ASIC, that should be shut down like the cheap whore house that they are.

Totally correct Anon - Accountants (the smart ones) have worked out that not being Licensed is like being a Real Estate Agent - self regulated...and that means under the radar and pretty much no compliance to have the sorts of conversations clients appreciate without all the BS red tape etc...expect to see way more "money coaches" floating around

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