The sole business model to see positive growth

The financial planning-accounting business model is the only one to have seen growth in its adviser numbers since 1 July 2022, according to Wealth Data.

The firm examined data between 1 July 2022 and 13 July 2023 and found the financial planning-accounting model had grown its current advisers by 25, a percentage increase of 2.9 per cent. 

While it was a small sum, it was the only one of six business models to report positive gains over the period.

These businesses are defined as licensees that are owned directly by a business that also provides a range of accounting services.

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The broader financial planning business model saw a loss of 224 over the same period while investment advice saw losses of 121. 

Accounting-limited advice lost 94, superannuation fund-based advice lost 48, and the ‘other’ category lost five. 

Colin Williams, Wealth Data founder, commented: “What we have witnessed are many ‘practices’ that were under the major licensees that often belonged in the financial planning model are now commencing their own micro-AFSL.” 

Looking at licensees commencing, the financial planning model created 115 new licensees and lost 50 while the financial planning-accounting model opened 15 and closed three. 

In terms of weekly data, there was a small gain of eight advisers in the industry as a whole. 

In the week to 13 July, the second full week of the new financial year, Wealth Data said there was a gain of eight advisers. Some 32 licensees had net gains of 48 advisers while 69 licensee owners had net losses of 37 advisers and there were 13 new entrants.

Sequoia was up by net five advisers with all advisers joining their main licensee InterPrac. Three of the advisers joined from MWL Group and two from RM Capital.

The firm recently signed a merger agreement with Castle Corporate and Castle Legal for $3.1 million that is expected to complete by the end of July.

Diverger rose back to 400 advisers with four new advisers – three who joined from GPS and one from Paragem – and Mercer and Castleguard Trust (Lifespan) rose by three. 

Viridian lost four advisers after a practice commenced their own AFSL, RM Capital was down by two who joined Sequoia, and Mancell Family Trust (FYG Planners) and WT Financial Group were both also down by two. 

Williams said: “We move back to some normality with 87 advisers affected, i.e. resigning or being appointed.

“We have still seen a few resignations backdated into last financial year, increasing the net loss by eight and is now showing a net loss of 607.”