Upward trend in advice entrants continues

There continues to be slow but steady growth in adviser numbers, with the number increasing to 15,846 following a small net gain of one adviser this week, according to Wealth Data numbers.

There was a net change of +43 advisers in the calendar year to date. 

In the week to 18 May, twenty-six licensee owners had net gains of 29 advisers. Sequoia, through its Interprac licensee, gained three advisers with two advisers being ex-Olive Financial Markets that was now closed.

Crown Wealth Group was up by two with advisers coming from two different licensees.

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Twenty-four licensee owners were up by net one adviser each including Steinhardt (Infocus), Perpetual, and Centrepoint. 

The upwards trend was supported by the latest annual Adviser Ratings’ Landscape report, which observed that the exit rate of advisers was finally slowing down. 

At the end of 2022, just over 15,800 financial advisers were recorded as working in Australia, down from a peak of 27,959 in 2019. The numbers represented a stabilisation seen for the first time in five years after a 20 per cent decline between 2020 and 2021.

Additionally, the latest quarterly Musical Chairs report found that in the first quarter of 2023, some 90 had joined the profession and just over 200 ceased. This meant there was one new entrant for every two exits, compared to one new entrant for every 30 exits two years ago.

This week, Wealth Data numbers noted there were four new licensees and two that had ceased operations.

In terms of losses, Energy Industries Superannuation was down by six and down to zero advisers. This occurred after merging with United Super (Cbus). 

Collins SBA was down by two and some 20 licensee owners were down by one each, including AMP Group, Count Group, Fortnum, and Ord Minnett. Notably, since 11 May 2022, AMP had lost 158 advisers, the highest loss any licensee had seen over the period.