The business model set to drive EOFY losses
With adviser losses set to continue, Wealth Data founder Colin Williams has detailed which business model is likely to drive the exodus.
Last week, it was found 41 advisers departed the Financial Advisers Register (FAR) in the week to 19 June, which was quadruple of those who left in the previous week and in the same period a year ago.
This is set to continue over the next week with only a matter of days left until the end of the financial year on 30 June.
Speaking to Money Management, Williams said he expected to see “disproportional” losses from those licensees that don’t offer holistic advice, those who sit in the accounting-limited advice model where advice isn’t the main focus of their business model.
This number has already been “bleeding” over the years, he said, as currently, there are 429 advisers in the model which represents only 2.2 per cent of total advisers.
“Most of the advisers in this model are basically accountants offering advice for setting up SMSFs. This model has been bleeding since FASEA, and with all the expenses continuously building for advisers on the FAR, I just don’t think too many of these advisers will see value in remaining on the ASIC FAR,” he said.
During the week to 19 June, advisers in this business model accounted for 25 per cent of the 41 losses.
Since the start of 2025, this model is down by 53 advisers compared to gains of 77 by holistic business models focused on financial planning.
This model is one that has affected Count since its acquisition of Diverger as many of the losses it has seen since have centred around advisers at Merit Wealth, which is restricted to SMSFs, and saw Count be the licensee with the largest decline in the previous financial year.
In the past week, nine advisers exited Merit Wealth and six exited the firm at the start of the month.
Speaking after the acquisition last year, Count chief executive Hugh Humphrey, said: “The limited authorised representatives on our books, largely within Merit Wealth, are a different type of authorisation who may only give advice once or twice a year, or do a piece of work for a client around an SMSF. That’s very different to an adviser who has 150–200 ongoing financial advice clients and very different in their revenue.”
AUTHOR
Laura Dew
Recommended for you
This week has marked only the second week of overall net losses since the start of the financial year, with M&A among the factors driving gains for licensees.
With North reporting its fastest six months of AUM growth in managed accounts, AMP says the vehicles have become a “foundational element of financial advice” for their efficiency benefits.
High-net-worth advice firm Multiforte Financial Services is to merge with Sydney advice firm Lorica Partners as it proactively seeks succession for its staff and clients.
Shaw and Partners has reached $3 billion in funds under management on its separately managed account, and the firm is eager to expand the offering.
