Which AFSLs saw top adviser growth in 2022?
Ord Minnett, Count Financial and Industry Fund Services have topped the list of licensees that achieved the largest net growth in their number of financial advisers last year.
Per Rainmaker Information’s Financial Adviser Report, these firms also generated the largest number of newly-registered advisers to their AFSL.
Ord Minnett saw a net increase of 39 advisers (16%) followed by Count Financial with 31 advisers (12%). Industry Fund Services increased by 22 advisers (24%).
The top six AFSLs with the largest net growth were rounded off by Alliance Wealth, Interprac Financial Planning and Matrix Planning Solutions.
Notably, they all had anywhere between 100 to 500 advisers, highlighted Rainmaker’s executive director of research and compliance, Alex Dunnin.
“We are continuing to see adviser numbers decrease overall, however, the largest AFSLs with more than 250 advisers, perhaps due their scale, seem to be coping better in the current climate,” he said.
“Adviser groups with between 100 and 250 advisers had a 25% reduction in total advisers, but the largest AFSLs (more than 250 advisers) experienced just a 5% reduction.
“AFSLs with two or less advisers suffered a 28% fall in adviser numbers.”
By the end of 2022, there had been a 17% reduction in adviser numbers. At 15,529 advisers, it was the lowest level observed in almost two decades.
Of this, AMP Financial Planning remained the largest AFSL by the number of advisers with 546.
Still, AFSLs were looking to expand their operations, Dunnin observed, while non-aligned AFSLs were experiencing a slightly higher percentage decline than bank-aligned AFSLs.
Outlined in the report, non-aligned AFSLs had seen a reduction of 17.6% in their adviser numbers last year compared to 16.8% for aligned AFSLs.
In the past year, the total number of AFSLs fell 11% to reach 1,611, he added.
AUTHOR
Rhea Nath
Recommended for you
A Supreme Court of Western Australia jury has issued its verdict regarding unregistered MIS operator Chris Marco, who was on trial for 43 fraud charges, with ASIC stating the verdict ends a “sorry chapter”.
ASIC has released the results of the latest adviser exam, with August’s pass mark improving on the sitting from a year ago.
Financial advice practices may be hiring younger or professional year advisers as a succession option, but they may find they are unable to put up the capital if the adviser looks to retire.
Any changes to product labelling for sustainable funds must be applied consistently across investor channels, including those used by financial advisers, according to RIAA.
