Over 1,200 advisers quit year-to-date

Exactly 1,229 advisers have been listed as ‘resigned’ year-to-date, meaning their current status on the Financial Adviser Register (FAR) is ‘ceased’, according to Wealth Data’s weekly analysis on adviser movements. 

What is more, of this, 266 advisers disclosed publicly that they had passed the Financial Adviser Standards and Ethics Authority (FASEA) exam.  

Wealth Data’s director, Colin Williams, said that the number was more likely to be closer to over 300 when allowing for a factor to gross up the amount for those who had passed but revealed their result publicly. 

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This week, the reshuffling in adviser numbers settled after the industry experienced one of the biggest shifts last week as IOOF finalised its acquisition of MLC Wealth.  

Following this, many of ex-MLC advisers, who were previously identified as not registered on the ASIC’s FAR, resurfaced this week at IOOF-owned Actuate Alliance Services which gained this week 27 advisers. 

At the same time, Aware Super saw a departure of 23 advisers roles, a move that was signalled by the firm a few weeks earlier. 

However, the move of the week undeniable belonged to IOOF which after assigning all advisers to licensees had confirmed its lead over AMP Group in terms of a size, ending the week with 1,493 roles operating under its umbrella. This lead was compared to AMP Group’s 1,414 and expected by many which Money Management first reported at the beginning of June. 

As far as the other changes of the week were concerned, a total of 74 appointments were made, with four being provisional advisers which indicated that 70 advisers effectively switched licensees.  

Following this, 131 resignations gave the net change of (-57) which meant that after excluding the provisional advisers, 61 adviser roles dropped off the ASIC’s FAR this week. 

The number of actual advisers dropped this week by 54, a much lower figure compared  to last week, and stood at 19,796. 

Source: Wealth Data 

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Amazing to see that 25% of exits have passed the exam. This suggests a wipe out of more than 50% could be brewing. Add to that, all the anciliary staff, suppliers etc - the economic and social impact will rival the car industry disaster. And that's not counting the impact on consumers, whohave been dudded by Hume, O'Dwyer ASIC and FASEA.

wipeout of 50%? likely to be more than 80%. remember the long-term average number of the registered adviser has been 28,500, it is now 19,800 so already a drop of 30% with another 5k to go to the end of the year before 1 Jan 2022. 15k at the end of the year would bring it to nearly 50% with a weekly drop-off of 100 likely to 2026.

hardly a surprise was designed to achieve this objective. no one else other than financial planners anticipated that they might be collateral damage. SURPRISE! they are just about to find out.

ha ha - I am already ready. but no one else is. ha ha

@George Orwell
Of those 25% exits who have passed the exam, I would consider it likely a good portion of them may well be moving to a different licensee which would see them leave the FAR and then return.

Hi John,

that is not the anecdotal evidence I am seeing. long-tenured, professional, mature advisers with more than 10 years of experience are passing the FASEA exam as a challenge for themselves, and then after personal reflection deciding this is no longer the place they want to be.

I am one of them. I think the true numbers which I believe will be a substantial reduction in the order of 5,000 by the end of the year will be reflected come the first quarter of 2022.

a lot of people are just seeing out the year, and personally only just recovering from Covid which has been a hard year for clients, so once the year is ended and many have time over Christmas and new year holidays they will all come back with a resounding not worth it anymore.

Yep; spot on John. I’m a long tenured, professional, mature adviser of more than 20 years advising (and a lifetime in the industry) reflecting before I consider re-sitting the exam. Really can’t be bothered as it isn’t going to change the messed up, over regulated and conflicted Advice industry.

Not really hard to sit what was a pretty simple exam in order to add to your ego, but it's a whole other exercise to embark on higher educational courses. Far too timing consuming and a lot of effort to do a Grad Dip. I would not blame advisers if they sat the exam and said "I was on par", but said "I'm leaving as I don't need to waste money and time studying".

you are on the money Yogi. there is a specific example posted on this forum a few days ago, and I have paraphrased that adviser's original post, and I will use that to demonstrate exactly what you have said.

this particular adviser was a cfp, had a law degree as well as a fasea approved degree, and passed the exam. they were in the first cohort of advisers to do so but decided that after nearly 7 years they would cease practice and work as a lawyer instead.

so the most worrying aspect of all this is that the most highly educated and the most experienced are the ones leaving the industry. I can hardly blame them.

Yep, but most of those advisers will leave in 2025. I doubt there are many advisers who have passed the exam and then already left of their own choosing.

The majority of those who have passed the exam then disappeared from FAR will have lost their jobs. Either as part of the banks exiting advice, or practices shedding staff due to a general decline in profitability.

no, the vast majority are leaving voluntarily. the best and brightest have already departed.

Advisers with options are using those options. The numbers departing would be significantly higher if there were jobs to go to. I dare say there would be a 50% reduction OVERNIGHT if everyone wanting to exit could find a job to go to the next day (inclusive of business owners who could sell without having a debt left over).

Overtime those wanting to exit will find a new job, but it will take some time. We might not hit the 10,000 mark for remaining advisers for another 3 or 5 or 7 years but we will get there soon enough. The numbers coming into the profession are non-existent (demand is low, only few of those graduating are getting jobs and very soon many universities will drop the degree completely). Amending a handful of regulations will not fix this trajectory, we are now in a spiralling terminal decline.

But the people in power don't really care. The boffins in Treasury wanted to replace Advisers through their pet CIPR project with automdated decisions at retirement, those in Labor/Unions/ISA view advisers as a hurdle to their economic and social objectives, ASIC has been poisioned by only hiring academics / consumer activists that don't understand the best interests of consumers, AFCA is the source of the real problem facing the profession - they are literally a law upon themselves without any avenues of appeals and they have no oversight (all of the current compliance frameworks are built around AFCA decisions as opposed to Chapter 7 obligations) and the Government seem to think that the only solution to financial advice compliance/affordability is 'digital solutions' for single issue subject matters.

Perhaps the most telling example of financial adviser contempt is from Joanna Bird. She is the chief regulator for financial advice at ASIC. She is on the public record saying "if the financial product works, there is no need for ongoing financial advice".

So who wants a career where you are treated like a criminal without being charged with a crime? Where regulations are imposed as collective punishment? Where the risk/reward balance is skewed with all the risk being placed on the Adviser. Where any wrong doing in financial services is labelled by the media as a 'financial adviser', whether they are licensed or not.

R.I.P Financial Advice.

100% correct. and the only solution is to leave and leave fast. my only contention with you is on the timelines where you think it will be 3, or 5 or 7 years. we haven't got that long.

by the end of this year, the vast majority of accountants and many advisers up to 5,000 will exit, which will then force many dealer groups to close and so on and so forth.

we are heading to the end very fast. 6 months tops. Jan 1, 2022, it'll be all over for but the very few.

if you actually make the decision to leave, you will feel so much better, and that will confirm why you really need to do it.

Why are you constantly posting on here telling everyone to just pack up and exit? Maybe a lot of us want to stay and look after our clients, leaving this industry isnt the awnser for many people. For older advisers wanting to retire or those that dont wish to study maybe, but for us that are resilient enough to get through this, we will come out the other end just fine thank you very much. We dont need this constant commentary of just leave the industry, most of the people I know in this industry are smart, strong people, they are not quitters.

Dead right you will feel better. After giving notice of my intention to leave this month, after 40 years of service to clients, already my mental and physical health is improving. Not as much tension in my body, sleeping better, feeling younger and looking forward to whatever the future brings, outside of financial services. Proud of what I have helped clients to achieve but if I stay in the industry any longer, they will all outlive me. If I stay on, doubt I will be still breathing by 2022.

One Powerball and I'm outta here!

I still feel many will leave at the end of the financial year as they did last July, all nice and tidy, deciding the extra 6 months and further ASIC levy are not worth the aggregation. Then a larger tranche on 1st of Jan. I'll be staying but understand others leaving. Never in the history of Australian financial services has so much damage been done by so few. Slow clap..well done Jane Hume and Kelly O'dwer. Surely the Lavern and Shirly of financial services ministers.

I like Laverne and Shirley. Great show.

That is an outrageous slur on the good name and character of Laverne & Shirley!

Hume's strategy all along seems to be to do as as little as possible, so that she is perceived in a positive light compared to the damage done by O'Dwyer. Sorry Jane but doing nothing when urgent action is required is just as bad.

Fair call. My apologise to L&S.

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