How many advisers exited in FY22–23?
Almost 600 advisers left the industry in the last financial year, a change of 3.7 per cent, according to Wealth Data.
Data over the 12 months to 30 June showed the number of advisers fell from 16,183 at the start of the year to 15,584.
However, the data pointed out this is significantly better than losses of more than 2,000 in the FY21–22 that represented 14.5 per cent of the industry.
Some 125 licensees commenced and 88 closed during the period and, when broken down into business models, 102 licensees in the financial planning model commenced and 51 closed.
The strongest growth was seen by new licensee MBS Advice at 18 followed by PSK at 16 and Fortnum and ASV Holdings that were both up 14.
Wealth Data noted Viridian Group gained 25 advisers during the year, but this “was mostly due to closing and opening a new licence at the end and start of the previous financial year”.
The licensee seeing the least growth was a tie between AMP and Insignia that both lost 136 advisers while WT Financial Group was down by 97.
The final figures may yet change as licensees have 30 days after 30 June to update their data.
Exploring how the start of the FY23–24 is faring, Wealth Data said it has seen 115 advisers join the industry with Insignia, in particular, gaining 20.
This has led to an overall net change of 33 advisers for the week to 6 July and puts the total number of advisers at 15,699.
Some 63 licensee owners had net gains of 93 advisers and 69 licensee owners had net losses of 128 advisers.
Twelve new licensees commenced and five ceased and there are 24 new entrants.
There was also two significant milestones for Insignia and AMP Financial Planning in terms of its adviser numbers.
Insignia fell below 1,000 advisers, down to 997, after losing 16 during the week while AMP Financial Planning dropped below 500 to 495.
“Insignia had a very busy week, down (-16) for the week but up 20 for the new financial year. Some of this is due to advisers switching from Lonsdale to Consultum. Lonsdale now has just eight advisers,” Wealth Data said.
“AMP Group was down (-8), losing 11 and gaining three — two gains being new entrants.”
AUTHOR
Laura Dew
Recommended for you
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
Australia has marked a decade among the best countries for retirement, according to Natixis, but with high inflation threatening their retirement goals, a third say they would get professional advice to improve their chances.
When it comes to the risks of acting as a responsible manager at an AFSL, compliance firm Holley Nethercote has shared a range of red flags that could see them facing disciplinary action from the corporate regulator.
Wealth management platform provider Netwealth has announced a partnership with FinClear to streamline trading capabilities for advisers.
The exodus of advisers hasn't finished.
Some are only just hanging on because they haven't found a buyer for their business.
And it will only be those with cash that can "cherry pick" at a price that's significantly less than what is being asked.
Before 2026 when education requirements are ramped up, compliance and regulation impact on those wanting to exit, it will be a buyers market.