Most adviser 'downsizing' has run its course

Centrepoint Alliance are in “pretty good shape” and do not expect to see a further drop-off of advisers in the next six months, having seen a net gain of adviser roles this calendar year.

According to data from Wealth Data, Centrepoint Group finished the end of financial year with 326 adviser roles.

Last week it lost four advisers, but saw a net gain of 12 roles this calendar year.

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Paul Cullen, Centrepoint Alliance group executive advice, said the firm did not expect more losses until after the Financial Adviser Standards and Ethics Authority (FASEA) exam deadline, which was on 1 January, 2022.

“From our perspective, a lot of the advisers who were going into retirement has run its course with us,” Cullen said.

“And the downsizing has largely run its course for us, so sort of what’s left is that last little bit of those that won’t do the exam.

“We have a few that are still there, but they’re not going to do the exam, and we still have people that have to get through it.”

Cullen said the firm would wait until the end of the year to re-assess and see who had passed the exam, but nearly everyone had completed it.

“Most of the ones left have done the exam in May, so we’ve been tracking it, so what’s left out of that is a handful of ones that have already told us they’re not going to sit the exam so they’re just working out how they can exit,” Cullen said.

“Then there’s a small number that haven’t really made a call one way or another, they haven’t been definitive about what they want to do.

“We’re in pretty good shape, but there’s parts of that authorised rep world where there’s still a lot to play out.

“Stockbrokers are a good example – or accountants – do they necessarily need it for what it’s going to cost them and the hurdles they have to jump to retain it?”

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