Advisers pragmatically offloading unprofitable clients
Financial advisers pragmatically discarding unprofitable clients is a real phenomenon with new data suggesting an average client reduction of around 8% per adviser.
The data has been revealed in a briefing provided by publicly-listed CountPlus in an investor briefing to Goldman Sachs, with the company noting the rate at which advisers are leaving the industry and the manner in which those remaining are trimming their sails.
It noted that the five-year forecast remained on track for the financial advice market to shrink to 15,000 advisers with 17% of advice firms currently capable of being regarded as “willing sellers”.
“Many sellers are under financial stress and for those with sub-$500,000 in revenue there is limited demand to acquire,” the CountPlus analysis said.
“Culling of unprofitable clients and attrition by under-services clients reduced average client numbers per adviser by 8% from 102 to 94,” it said.
Recommended for you
With an advice M&A deal taking around six months to enact, two experts have shared their tips on how buyers and sellers can avoid “deal fatigue” and prevent potential deals from collapsing.
Several financial advisers have been shortlisted in the ninth annual Women in Finance Awards 2025, to be held on 14 November.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
