The financial advice profession has lost 89 advisers this week continuing the recent cascading trend with about 500 leaving within the last four weeks, bringing the industry to 16,545 advisers.
Wealth Data’s analysis showed the week was again dominated by licensees effectively closing to zero advisers with 31 closing up shop, losing 45 advisers and bringing the year-to-date closures to 229, more than double the previous corresponding period.
Financial year to date, the numbers looked worse as many were backdating losses, with 369 closing versus 166 for the same corresponding period.
Of the 31 licensees that closed, 24 were listed under Accounting - Limited Advice (SMSF Advice) for a total loss of 27 advisers. Three licensees were in the Financial Planning model (holistic advice) category which lost eight.
This week, ANZ shed 28 advisers, four of which had switched to new licensees. LUCRF Super, now part of AustralianSuper, fell by seven while Intercharge was down six. Three others closed out losing two advisers each and the remaining 26 all lost one adviser each.
MWL Group led industry growth with a net gain of three advisers, all from different licensees who had resigned earlier in the year. Meanwhile, eight licensee owners had net growth of two including UniSuper who picked up an adviser from Aware Super and the other from LUCRF.
Steinhardt Holdings (Infocus) was also up net two, picking advisers up from ANZ Bank. A new licensee commenced with two advisers, with the practice moving away from Life Plan. Centrepoint, Count, AMP and Excelsuper rounded out the licensee owners who grew by two advisers.
A tail of 16 licensee owners had net growth of one each, including Spark Partnership Group, Euroz Hartleys and Australian Unity.
Comments
Great fun. To stem the tide they want to water down the legislation that caused this in the first place, as if people wake up one morning and decide: "hey, I'm out" or "gee, looks like I don't need a Grad Dip so I'm back in". These decisions often take years and what we see today are the results of decisions made long ago. Don't worry about affordable advice, it's gone. Those of us staying in will decide what's affordable.
No - clients will decide what’s affordable (for them).
No shortage of clients coming through the door, and cost does not seem to be an issue.
Unless the client is in Industry Super - then they pay for advice regardless - no choice?
Agree 100%.
An orchestrated obliteration of an industry & profession supported by a Govt that is no longer in power.
Because they had no understanding and referred to academics & self interest groups who also has no understanding other than manipulated ideology it has been an unmitigated disaster.
So where does this end up?
One adviser servicing the whole of Australia?
Suspect it will end up with affordable advice being delivered by product providers once ASIC recommends expanding Intra Fund Advice - all paid for from the Admin Fee. Could wrong.
I predicted that happening back in 2004 as the industry funds' books grew and matured. Though available in patches, it's taken longer than I would've expected.
Probably took longer than planned to eliminate the competition ie Financial Planners and Retail - but that issues seems to be under control now - many leaving, the remain spending their time training or on compliance - not on taking FUM.
And the people responsible got away scot free. Oh, I forgot the small matter of their having lost the election.
Small potatoes compared with losing everything you've worked for, your family, your house, your life.
And most of the people responsible will have cushy jobs to be going on with.
Totally unAustralian.
The Liberal Govt WERE entirely UNAUSTRALIAN in the manner in which they ignored financial advisers and repetitively rode roughshod over a cohort of their vastly supportive constituency for years.
They treated advisers with complete disrespect and ignorance and deserve to be in opposition for years to come until they understand what the meaning of loyalty and respect is all about.
They were a complete disappointment and disaster for this industry.
Agree, and they have clearly learned nothing from the rout, putting Jane Hume in charge of the autopsy! What a farce.
Prediction will be a demolition to a maximum number of advisers left of 10,000 by the end of 2024.
This even may well come sooner.
This will result in the remaining advisers
charging very high fees due to lack of competition and only dealing with a high net worth or elite client base.
The middle ground will flounder on misguided and confused and making dangerous decisions because they will no longer be able to access affordable advice.
This is what is happening now but will be significantly worse in the next 2-3 years.
It is only the beginning of the mass problem.
The advice business is dead. Get out now. It will be a nasty result for Australia, but no one will reward you for staying in the business. We have a change if government, but I fully expect the regulatory regime to continue to get worse
I’d argue the advice business is alive and well, the product selling business is DOA. I don’t typically compete with industry super fund clients, so I don’t mind if they get some advice on asset allocation from their fund. I’d argue a very prescriptive advice model should exist where funds can advise on their own product, it makes sense. But as soon as the scope extends outside that, you’re cooked.
My concern is the articles i am seeing saying most people could receive a limited ROA with a cost of between $300 to $500 to provide. Not many businesses will survive if that is the norm. I currently charge $3,300 for a well rounded SOA and i feel that is even too cheap. I am not sure which tree all the clients willing to pay over $5k are growing on? If any knows where it is or who is selling them it would be great :)
You don't need to find the tree, you need to look internally. The SOA you charge $3300 is worth more than that. Once you believe that and price accordingly the clients willing to pay for it will appear.
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