Self-licensing sees solo AFSLs on the rise
A third of Australian Financial Services Licences (AFSLs) are single-owner practices, according to Wealth Data, reflecting the rise of self-licensing.
The number of AFSLs is approaching 2,000, with 1,901 AFSLs currently, and this number has grown steadily over the years. This growth in AFSLs is in contrast to the number of advisers which has fallen over the years to currently stand at 15,373.
The number of single-adviser practices make up just 4.1 per cent of total advisers, but 33.5 per cent of total AFSLs. While they are small firms, they have the greatest experience with over three-quarters of advisers (81.3 per cent) in these firms having 10 years’ experience or more.
Another 766 work at the firm with just two advisers, which make up 5 per cent of all advisers and 20.2 per cent of all AFSLs.
At the other end of the spectrum, 6,039 advisers are authorised at AFSLs that have 100 or more advisers, reflecting 40 per cent of all advisers. Some 30 AFSLs have more than 100 advisers, just 1.5 per cent of all AFSLs, including the largest firms such as Entireti, Count, Centrepoint Alliance and WT Financial.
Source: Wealth Data, August 2025
Previous research by Adviser Ratings in May 2025 found 28.3 per cent of advisers are working at privately owned licensees with 1–10 advisers, representing 4,415 advisers. This is up from 4,014 advisers in December 2021.
However, as these firms look to scale up, this could lead to a rise in firms moving into the 11–100 category.
“Over time, we see a trend towards consolidating privately owned (1–10) licensee practices into privately owned (11–100) practices as they seek economies of scale with other practices or a way to reduce additional administrative tasks.
“A clear trend in the profession is the shift towards independent, smaller practices that seek licensees who will support a client-centric approach to advice delivery and regulatory adaptation.”
A separate report by the Financial Services Council (FSC) found 450 micro-licensees with less than 10 advisers have been approved since 2020, making it the fastest-growing sector. Some 93 per cent of self-licensees said that opting for this method allows them more flexibility, according to the report, and 47 per cent said it is more cost-effective for them.
“This evolution has occurred at the same time as the industry has matured into a profession, however it has also caused a reallocation of risk in the financial advice industry and there is shifting responsibility for how compliance obligations are executed across the system,” the FSC said.
“This shift towards self-licensing may also reflect frustrations with licensee fees, perceived inflexibility, and the uneven distribution of reputational risks associated with larger licensees. Additionally, technological advancements have made it easier for advisers to manage compliance and administrative tasks independently. However, the opinion of self-licensees remains split on whether self-licensing makes these processes more efficient and cost-effective.”
AUTHOR
Laura Dew
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