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AMP Financial Planning is the largest dealer group by adviser numbers, according to Money Management’s Top 100 Dealer Group statistics, which were compiled by DEXX&R.
The survey also revealed that the top dealer groups in Australia remained resilient in a tough market environment, with most of the top 10 growing in adviser numbers and steadily recovering funds under advice (FUA).
AMP Financial Planning took over from Professional Investments Services (PIS), which is down by about 130 advisers from last year. The fall for PIS is dramatic, considering it has enjoyed the top spot for the past four years. However, managing director of Professional Investment Holdings Grahame Evans said it was due to a weeding out process that had said goodbye to about 300 advisers. Evans said PIS had engaged in a process of removing advisers that were not paying their way, were not serious about being advisers on a full-time basis, and were also not comfortable with the increased education standards that the group was implementing.
Evans said that while the transition to fee-for-service was part of that process, he added, “This is more about moving into professionalism and the requirements of working in a professional environment, and this is going to be a struggle for some people”.
AMP benefited greatly from PIS’ drop in terms of the rankings, but this did not take away from AMP’s own efforts to reach the top spot, as it grew by 75 advisers over the last year.
AMP Financial Planning managing director Michael Guggenheimer attributed the growth to various initiatives, adding that the group had worked very hard over the last several years to attract quality financial advisers. He said while some advisers have left over the last year, its attrition rate is low.
Count Financial, which was ranked third, also lost advisers over the last year – although the losses were small in comparison to PIS. Managing director and chief executive Andrew Gale also pointed to a drive towards increased professionalism and productivity.
“In some respects, the number of advisers isn’t necessarily the best measure in terms of how a dealer group is going overall,” he said, adding that the top 20 to 40 per cent of advisers within a dealer group tend to account for a large portion of the overall business performance. He attributed the drop in numbers to a greater focus on quality, professionalism and productivity, which at the lower end of the spectrum had resulted in advisers either choosing to leave or being let go by Count.
Millennium3 enjoyed a jump of 63 advisers this year and sat in fourth place while Commonwealth Financial Planning grew by 56 advisers.
In terms of FUA, Macquarie Equities only just snatched the top position from AMP, moving up from second place, while Commonwealth Financial Planning came in third. Despite its drop in adviser numbers, PIS rose from sixth place last year to fourth, while RBS Morgans was ranked fifth.
• See the Top 100 Dealer Groups 2010 feature in this week’s Money Management for the Top 100 results and in-depth analysis and interviews.
