How many advisers will be there in 2022?

The industry might see a number of active advisers fall to around 17,227 at the start of the next year from approximately 18,500 as at the start of December, according to Wealth Data.

This would mean that 1,345 additional advisers would drop off the Australian Securities and Investments Commission (ASIC) Financial Adviser Register (FAR) on top of the 2,065 who have been taken down from the register year-to-date.

“We expect the numbers to start dropping off progressively over the coming weeks and into the New Year. We also believe that the number of advisers will continue to decline in 2022, to between 15,000 and 16,000,” Wealth Data’s director, Colin Williams, said.

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However, he warned it would be tricky to work out the number of advisers who had failed the Financial Adviser Standards and Ethics Authority (FASEA) exam twice or more in 2021 and who, therefore, would retain the right to keep practicing as advisers until they passed the exam to September, 2022.

“We came to the conclusion that 1,444 advisers fall into this category,” Williams said.

According to Wealth Data, the vast majority of new advisers who commenced since 2019 were provisional advisers (some may now be an adviser in their own right) passed the exam. At the same time, FASEA’s data stated that “over 15,500 are recorded as active [advisers] on the FAR”.

“By adding in the new advisers, we estimate that the total number of advisers who have passed the exam and current is 15,783 as of 9 December, 2021,” Williams said.

Source: Wealth Data

He stressed that not everyone who had passed the exam was a current adviser as per ASIC’s definition.

“We are assuming that the vast majority of advisers (90%) who have failed to date will have failed twice. It would have been in the interests of most advisers who failed once to at least have one more go before year end and therefore build a buffer of time before exiting or having another go,” he said.

Source: Wealth Data

Having estimated the number of advisers who had failed at least twice and were on the ASIC FAR to be 1,444, Wealth Data added this total to the total of a number of advisers who had passed and current, 15,783, which gave a grand total of 17,227.

“Currently we have 18,572 advisers, indicating a loss of some 1,345 advisers between now and the ASICs reporting during January,” Wealth Data’s director stressed.

“There has been some guess work around the data with regard to calculating the number of advisers who have failed twice and therefore remain on the FAR.

“However, even if the estimates are not close, the variance overall would not change substantially as the bulk of advisers have already passed the exam or resigned. We could see some further heavy losses if major groups pull out of advice.”

Source: Wealth Data

 




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by 2026, there should be no more than 5,000 registered financial advisers left.

Yes hard to see it any other way, I'd say 10,000 now I've seen these figures. They clearly want us gone, to be replaced in three ways 1) Continuation of the intra fund advice carve out for super funds 2) Banks reentering with robo advice to sell product 3) the removal of product from the Corps Act as partly the personal advice definition, allowing accountants etc to re-enter and provide advice as incidental and limited or scoped with letters of advice vs soa's.

These numbers are still going to be way off and actual advisers who eyeball clients will be a lot lower!
I know of at least 3 people who have passed the exam and are still on the register in my organisation alone who have no intention of sitting in front of a client but want to stay on the register for 'just in case'.

Of the people that have failed twice what are their chances of passing realistically?

I think the actual numbers are going to be closer to 14,000 and by 2026 it will be well and truly below 10,000 at which point those that are left will be seeing no more than 100 to 200 clients each offering a review only service!

Basically financial planning will be for less than 10% of the population which really is amazing when you think about it!

I know half dozen at least that have not met with a client in years and do not intend to in the future - but FASEA is passed and they maintain the presence on FAR and keep up CPD. These numbers do not give a clear picture of how many advisers there are to actually advise clients.

These numbers do not take into account those advisers who have passed and are so thoroughly discussed with the process and soul destroying compliance regime that they are going to leave anyway, having only done the FASEA exam a big up yours to the regulators.

Sounds like me! I've passed the FASEA exam. I have all the qualifications needed. I enjoy servicing my book of clients. But I will likely exit the industry because I am tired of the nonsense regulations and bad press.

Sadly...no one cares really..Financial Advisers are on their own....your Associations are too busy promoting the wider needs of the industry which include increasing access to advice for their Hesta members.....to quote Treasury..."we recognize there will be job losses in this sector but they will be taken up by other sectors and other means" Feels like that a lot of Advisers are like the Video Store owners thinking how fantastic things are, and how busy they are and next year is even better because the other 3 shops in town closed down. the only solution is to change bad legislation and you can't do that with conflicted representation.

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