June adviser losses surpass 100

After a brutal month for adviser numbers, the net loss for June now stands at more than 100 advisers, but the financial year is on track to end in positive territory.

In the last full week for the financial year, adviser numbers suffered a net loss of 56 for the week ending 26 June which pushed it back below the 15,500 bar. This brings net losses during the month to 113.

It is important to note that there are still a few days remaining for the 2024–25 financial year, meaning that further losses are still likely to occur over the coming days.

But the profession is still holding in the green for the financial year with a net gain of 143 and are just keeping their heads above the water with a net gain of 12 for the calendar year-to-date.

Meanwhile, this week saw four new entrants and 93 advisers active in appointments and resignations. As expected this close to 30 June, there were no new licensees again this week and three ceased.

Looking at movements for the week, growth was limited with Centrepoint Group up by two advisers, both of whom switched from Akumin, and a tail of 11 licensees up by one adviser each, including NAB Group, Infocus, and Solomons Wealth Management.

“Of interest - Australian Retirement Trust (ART Group) have continued to authorise advisers to work across both of their licensees, these being Sunsuper and QInvest. As a result, Sunsuper gained 10 advisers this week on top of the 25 last week. However, net change at ART Group is zero,” Wealth Data founder Colin Williams said.

On the other end of the spectrum, however, losses were considerable with Count Limited down by net 14, including seven from Merit Wealth, four from Count Financial, two from Paragem, and one from GPS Wealth.

Notably, Williams pointed out that Merit Wealth has been hit particularly hard over the current financial year, having lost a net total of 53 during this period. Wealth Data previously discussed how advisers in the limited advice or accounting model – which includes Merit Wealth – are likely to form the bulk of the year’s losses. 

“Most of the advisers in this model are basically accountants offering advice for setting up SMSFs. This model has been bleeding since FASEA, and with all the expenses continuously building for advisers on the FAR, I just don’t think too many of these advisers will see value in remaining on the ASIC FAR,” he said.

Meanwhile, Entireti saw a net loss of four, including the two lost to Centrepoint and one each from Charter and Fortnum, and Avana Financial Solutions also down by net four.

Lifespan was likewise down by net four, though it actually lost six but managed to pick up one from Capstone and had another return after a break, and Rhombus lost two each at RI Advice and Consultum.

A further five licensees were all hit with net two losses each, including Capstone, Fiducian, PictureWealth, Pilot Wealth, and Wealth Services Partners.

A tail of 27 licensees were down by net one adviser each, including Shaw and Partners, Macquarie Group, and HNW Group Holdings.

Notably, many advisers are still yet to be reappointed, though the expectation based on previous year’s activities is that a significant number will likely rejoin the Financial Advisers Register (FAR) at the start of the new financial year.
In fact, Williams found there are 140 advisers who resigned in June alone that are yet to be reappointed elsewhere.