More small licensees to be closed down

While further closures of small licensees are expected, adviser number reporting to the corporate regulator continues to lag due to the holiday season, according to Wealth Data.

The research house said it expected the net number of advisers to further slip to17,601 this week.

Wealth Data’s director, Colin Williams, said that he expected the number of advisers to further reduce and reach the level of between 15,000 to 16,000 during 2022.

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“We suspect that some major licensees are yet to fully report their adviser movement with regards to Financial Adviser Standards and Ethic Authority [FASEA] exam requirements,” he said.

“We also believe that many advisers that are due to be taken off the Australian Securities and Investments Commission [ASIC] Financial Adviser Register [FAR], work in small licensees that will also be closed.”

As far as losses this week were concerned, Findex was down by seven advisers, of which none has appeared elsewhere, while Australian Advisory lost five advisers, all via their licensee Life Plan.

NTAA, that owns SMSF Advisers Network, was down four and four groups reported a loss of three advisers including two small licensees that now have zero advisers.

At the same time, PSK who now owns Ipac lost two advisers and 26 licensee owners were down by one adviser.

During the first month of 2022, Insignia Financial (formerly known as IOOF) lost 19 advisers for the year, and was followed by WT Financial Group, including Sentry, and Findex, which were both down by eight.

In the announcement made to the Australian Securities Exchange (ASX) yesterday, Insignia Financial said it had lost 118 advisers during the December quarter, largely through the loss of smaller practices in the self-employed channel as a result of the reset of management fees charged by IOOF to self-employed advisers.

On a more positive note, as far as the new licensees were concerned, the financial planning peer groups opened 12 and two were closed. The accounting – limited advice peer group, which offered advice to self-managed super funds (SMSF) advice only, saw six licensees close. This group was expected the experience significant losses once reporting caught up.

 




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There will be 12,000 to 13,000 advisers left at the end of this year and by the end of 2023 there will be only 10,000.
There will be very minimal numbers of new advisers at all.
This has been a planned and systematic cleansing programme without concern for the clients or consumers that will need more advice not less.
This all started with the ridiculous My Super debacle which was nothing more than a strategy to hand control to super funds and cut the adviser out.
If a super member had $350,000 in their account spread between 4-5 default investment options and were satisfied with their fund performance meeting their objectives and happy with their adviser relationship, unless they made a decision to replace those default investment options they were automatically transferred to a My Super account where the adviser was then unable to charge fees from the clients account….despite having a trusted and professional relationship with the adviser.
Manipulated, strategic political controls to eliminate advisers.
This Liberal Govt has been a disaster for financial services and self employed advisers.
They are a disgrace.

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