Of all the advice business models, the superannuation funds model is the most highly concentrated in the central business districts (CBDs), with over 70 per cent of advisers in the area in all states bar NSW, according to research.
Wealth Data suggests this is due to a concentration of advisers, many being phone-based, co-located in the CBD offices of the super funds.
In Queensland, home to Australian Retirement Trust and Brighter Super, the number working in the CBD has risen to 86 per cent followed by South Australia at 85 per cent. NSW is the only state with more super advisers outside of the CBDs – 42 per cent in the CBD and 58 per cent outside of it.
And with super funds amped up to provide advice following the recommendations of the Quality of Advice Review (QAR), the research house expects these numbers to rise, with more advisers on the ground.
Last week, Money Management reported that Minister for Financial Services, Stephen Jones, believes the number of advisers can return from the current numbers of less than 16,000 to 30,000.
Compared to super funds, all states have less than half of their financial planning advisers in the CBD. In Victoria, Queensland and Western Australia, the number stands at less than 20 per cent.
“It was suggested by Stephen Jones that the number of advisers could get up to around 30,000 off the back of super funds. Currently, advisers directly linked to super funds only make up 732 of the 15,707 advisers, and since 1 Jan 2022 have gone back by -10.4 per cent versus -8.42 per cent of all advisers,” explained Wealth Data founder, Colin Williams.
“For such growth to occur, it would almost certainly require a much larger portion of advisers to be on the ground where their (super fund) members are based. Some industry funds have set up agreements with external advisers, and this may well be the only strategy for the future growth of advisers.”
Meanwhile, the investment advice model in each state is found to have over half of its advisers based in the CBD.
The accounting – limited advice model has the least number of advisers in the CBD, with all but two states (Tasmania and Northern Territory) having less than 20 per cent in the area.
Per Wealth Data analysis, the ACT has the highest CBD advisers overall at 58 per cent. This is followed by the Northern Territory at 50 per cent and Tasmania at 47 per cent. NSW, Victoria, Queensland and Western Australia hold reasonably similar numbers, hovering between 29 per cent and 35 per cent.
Looking at adviser movements in the week to 20 July, there was net zero growth and the number of advisers remained steady at 15,707. Net zero growth only occurred only once in the past financial year.
There has been a net loss of 90 advisers for the calendar year to date.
This last week to 20 July, 24 licensee owners had net gains for 30 advisers.
Count Group was up by net three, with Count Financial appointing four advisers. Three of these advisers came from Fitzpatricks and one new entrant, and lost one adviser.
Four licensee owners were up by net two, including TFG Australia, with both advisers coming across from FYG Planners while 19 licensee owners, including Boyce, Minchin Moore and AMP Group, were up by one.
In terms of losses, Insignia was down by net seven, losing eight and gaining one adviser. Fitzpatricks was down by four and FSSP Financial (Aware Super) was down by three.
Blue Rock and Capstone were both down by two, and one of Capstone’s losses was an adviser commencing his own AFSL.
