Ceasing advice licensees outweigh new players
Just two financial advice licensees have commenced operations while seven ceased over the past two weeks, according to Wealth Data.
In the week ending 13 June, no new licensees opened shop and two closed down. The week prior displayed a similar result, with two licensees commencing and five ceasing operations.
Discussions around self-licensing have permeated the advice profession recently, with many debating the potential benefits in comparison to the variety of risks and steep costs.
“The buck stops with you – with this freedom comes responsibility and this carries risk,” Numerisk managing director and founder, Richard Silberman, described last month.
Wealth Data’s analysis observed a net loss of nine advisers in the past week, causing overall adviser numbers to drop below the 15,600 mark to 15,597 once again.
This was the second time that adviser numbers have fallen below the 15,600 line in recent months. In early April, a net loss of 14 advisers in one week drove the profession to fall from 15,609 to 15,595. This was rectified by the strong waves of new entrants following the release of the financial advice exam results in May which boosted numbers back up to 15,611 at the time.
Colin Williams, founder of Wealth Data, forecast a “very busy period” for adviser movement around the corner during the end of financial year time when advisers look to switch licensees.
“As we close in on the financial year, volatility will be high in the adviser marketplace,” Williams described.
Some four new entrants joined the profession and nearly 50 advisers were active with appointments or resignations in the week to 13 June.
In terms of adviser losses over the week, 23 licensee owners had net losses of 30 advisers in total.
Capital Accounting Group lost four advisers, bringing the licensee down to zero. Two advisers joined IA Advice, one moved across to NWG Financial Planning and the remainder is yet to be appointed.
Four licensee owners declined by two advisers each. This included AMP Group, after it lost three advisers and welcomed one new entrant, and Centrepoint Alliance which lost one adviser each from Alliance Wealth and Matrix.
Guideway bid farewell to two advisers who are yet to be appointed elsewhere, while Viridian lost one adviser to Templestone and the other yet to be appointed elsewhere.
A tail of 19 licensees were down by net one adviser each, including Insignia Financial, Morgans Group and Mutual Trust.
Looking at the adviser growth, 16 licensee owners had net gains of 21 advisers in total. Capstone Financial Planning took the lead with a gain of four advisers after it welcomed three from AMP and another adviser returning back into advice after a short break.
IA Advice increased by two advisers as previously mentioned, while Australian Retirement Trust (ART) were also up by two as both advisers rejoined the industry after a break.
Some 13 licensee owners were up by net one adviser each, such as Oreana, Lifespan and Bell Financial Group.
AUTHOR
Jasmine Siljic
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
