The movement in adviser numbers this was week was dominated by Commonwealth Bank’s shut down of Commonwealth Financial Planning (CFP) which translated into a departure of 74 advisers.
Additionally, the total net loss for the week was compounded by heavy losses at AMP (-38) and IOOF (-28) with a very little take up of advisers elsewhere, according to Wealth Data.
The firm’s director, Collin Williams, said that AMP experienced the losses across the board and “none at this stage have switched to alternate licensees”.
“IOOF did see some advisers leave and commence work under their own self-licensed arrangements. Also, IOOF losses was compounded by several ‘staff’ (non-client facing) coming off the Australian Securities and Investments Commission’s Financial Adviser Register,” Williams said
Following this, three licensee owners saw net losses at four, including NTAA, while another two licensee owners lost two advisers, and 22 had seen net losses of one adviser each.
Commenting on the year-to-date data, which saw net losses past 2,000, Williams said that it was noteworthy that the only growing are was the self-licensed sector compared to other financial planning business model peer groups.
Across that sector, there were 113 licensees that commenced and only 45 that exited. By comparison, across the ‘accounting – limited advice’ sector, there were 105 closures and zero new licensees which commenced in the year-to-date.
Oreana remained out in front, counting year-to-date in terms of growth for licensee owners with over 50 advisers, as it saw a net growth of 37 and was followed by Centrepoint at 15.
Also, five licensees shared third place – Advice Evolution, Bombora Advice, Canaccord, Capstone and Count.
The total number of advisers continued to fall and as at 2 December, 2021, it stood at 18,574.
Source: Wealth Data
Comments
There's and easy step by step solution here:
1. ASIC - take yourself out the back and shoot yourself
2. AFCA - refer to point 1 for yourself too
3. Convene a professional standards board staffed by experienced professionals, not bureaucratic idiots. Include a regulatory representative and a consumer rights person but they must be in the minority.
4. Repeal all the BS compliance regs that place advice out of the reach of ordinary Australians due to over whelming compliance costs.
5. Ban vertical integration (including for union funds). This being the root of the majority of the problems since the 1980's.
I.e. the biggest RESET button known to mankind.
I'll wake up soon, I know I'm dreaming.
Agree. And while we're doing a reset, ditch all the KPI's based on FUM's.
Wildcat, you normally push buttons, but this is too far, telling people to commit suicide in this environment is wildly distasteful
PMSL. Billybob you need to understand the difference between killing a regulator and a human being. Since when was ASIC or AFCA a person? I hope they die as a violent death as FASEA whilst no blood was split and no tears shed.
What are you smoking?
As expected a childish response in "what am I smoking" your lack of contrition on what you clearly knew what you were saying speaks volumes on your character
This exodus will not stop. The extension allowed on the FASEA exam until September 2022 will do little more than slow it down and give those who are still undecided a brief reprieve whilst they make up their minds. Unless there is some sort of constructive rollback on this "over reaching" legislation called LIF most of the knowledge and experience will be gone by 1/1/2026. But think that was the plan all along ?? IF NOT ? WHAT A BLOODY MESS THEY HAVE MADE.
there won't be any reprieve or rollback of the education standards. the only people who are hoping for this is accountants (who wish they were qualified ) but really are not.
please pass on my post to your accountant colleagues.
This comment did not age well given the violent back flip on education standards announced on both sides of the aisle this week ,,,
you should have seen how dumbed down the nov exAM WAS, LIKE NIGHT AND DAY TO THE JULY ONE
So many, many more to follow. 1 Jan 2022. Mass exodus expected. I will never vote Liberal again and you cant Labor. Despite all requirements having been met, I think I will take early retirement before government destroys my capital value.
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