Insignia tops annual turnover

Insignia has the highest adviser annual turnover rate of the big five licensees at 38% while Morgans has easily the lowest rate of turnovers at 14%, according to Wealth Data.

The calculation was completed at the licensee owner level and was based on staff resignations as a percentage of the average number of staff between the start and end of the 12-month period between May 12, 2021 and May 11, 2022.

In second place was Diverger with a turnover rate of 25%, followed by WT Financial Group’s rate of 33%, AMP with a rate of 31% and Centrepoint Group in fourth place with a rate of 20%.

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Wealth Data’s Colin Williams, said: “Each industry and profession will have its own issues to deal with and the financial advice sector has had more than its fair share over recent times.

“However, each participant in financial advice have known what the issues are and put in place plans to minimise their losses. Therefore, a comparison across leading participants makes for interesting reading.”

Adviser turnover statistics by licensee owner

 

Number of advisers at start of period

Current number of advisers

Average turnover rate

Insignia

1575

1154

38%

Diverger

613

471

35%

WT Financial

702

546

33%

AMP

1379

1077

31%

Centrepoint

506

518

20%

Morgans

488

450

14%

 

Appointments and resignations

 

Number of advisers at start of period

Percentage of appointments

Percentage of resignations

Insignia

1575

6%

33%

Diverger

613

8%

31%

WT Financial

702

7%

29%

AMP

1379

5%

27%

Centrepoint

506

23%

21%

Morgans

488

6%

14%

 

Williams said: “Turnover rate can be affected by a business strategy. For example, if a business in financial planning decides to no longer provide services to ‘single adviser’ practices, that business may expect some additional losses. However, that company may have predicted that as a result of the change, they could attract large practices and increase the number of advisers.

“This past year has been dominated by the FASEA exam and heavy losses were always expected, which in turn means a high turnover rate. As mentioned, every business knew that this was coming up, so it is interesting to see which business were able to best manage the FASEA issue.”




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