Significant revenue rises seen at listed advice licensees

Wealth Data analysis has seen a “significant jump” in gross revenue per financial adviser at eight ASX-listed financial advice firms.

The research house reviewed the ASX financial statements for the first half of FY24 at eight listed advice companies: AMP, Insignia, Diverger, Sequoia, Centrepoint, Fiducian, Count and WT Financial Group.

To compare against the previous financial year, Wealth Data annualised the following amounts by doubling the gross revenue. This was then divided by the average number of advisers to determine the average gross revenue per adviser.

It discovered that the top range sits around $600,000 per adviser for one company, which remains the same as the year prior.

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The most “significant jump”, according to Wealth Data founder Colin Williams, was seen in the lowest company’s gross adviser revenue. This figure grew by nearly $50,000, from $236,550 in FY23 to $284,923 in the annualised FY24 amount, a rise of 20 per cent.

As a result, the median revenue rose 13 per cent from $393,050 to $446,480, while the raw average saw an increase of over $30,000 from to $493,936.

“The comparison is not a complete ‘like for like’ comparison to what we completed in September last year. This data is for the half year, while the previous data was a full financial year. However, it does provide good guidance as to where the revenues are heading with a jump in the median and averages,” Williams noted.

Earlier this year, WT Financial founder and managing director Keith Cullen said advisers are significantly short-selling themselves by up to 50 per cent.

“Many advisers are short-selling themselves; they need to make sure they are efficient and are in front of their clients, not stuck in the back office.

“They need to make sure they are charging an appropriate fee for the risks they bear. They have to manage those and price that into their fee. We find there are more than enough clients who are willing to pay a higher fee.”

Wealth Data did not name individual firms as “revenue is not necessarily an important factor for all companies”.

“For example, some firms charge a flat fee for their services. Culture fit, longevity, strong financial planning and business skills are all part of the equation when considering financial advisers for their firms.”