Breaking down new entrants data

There were over 350 new or provisional advisers who came on board during 2022, according to Wealth Data, as the industry seeks to grow to counter the adviser exodus.

Data from the research house showed there were 368 new entrants with an appointment date during 2022, although 32 were now showing as ceased on the Financial Advisers Register (FAR).

Some 234 were provisional advisers and 102 were financial advisers with a gender breakdown of 72% male and 28% female.

In addition, some 29 new entrants had joined since the start of 2023.

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At opposite ends of the spectrum, most new entrants had joined either licensees with less than 10 advisers (22.3%) or licensees with more than 100 advisers (41.8%) with few joining firms that sat in the middle of those sums. 

The volume joining small firms was notable, Wealth Data said, as those licensees had only 7.9% of all other advisers.

Some 69% joined financial planning firms and 22.9% joined those firms offering investment advice while 6% joined accounting-financial planning firms. None joined accounting-limited advice or ‘other’ firms.

Despite talk of superannuation funds offering advice in the future post Quality of Advice Review, only 0.8% of new entrants worked on super-fund based advice.

Finally, from a geographic perspective, the largest volume came from Victoria which hired 100 new entrants followed by New South Wales at 96 and a smaller proportion in Queensland at 79.

Western Australia hired 27, South Australia 13, ACT had 12 and Tasmania had eight.