Advisers That Switched
Members have access to this post and it includes a details analysis through a set of dashboards - Highlights sectors of the advice market and licensee owners.
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In this post we look at advisers switching licensees over recent months. The details are broken down into three key sections
1 - Self Licensed AFSLs - Commenced During 2022 (Dashboards 1 & 2)
Note: For this blog post, we have defined a new Self Licensed AFSL as one which commenced with advisers from Jan 1, 2022 to April 21, 2022. The ‘licensee owner’ must have 10 or less advisers, i.e. the AFSL is not associated with large firms.
Key Summary points:
52 new licensees commenced and currently (April 21, 2022) have 118 advisers attached
The vast majority of new Self Licensed AFSL that commenced had Financial Planning - Holistic advice models
The majority of advisers that switched into this model, left large licensee owners - Three licensee owners represented more than 50% of the advisers that switched
Only 11 advisers switched from a licensee owner that had 10 or less advisers
2 - Closed Self Licensed AFSLs (Dashboard 3)
The number of closed licensees since Jan 1, 2022 to April 21, 2022, defined as a licensee reduced to zero advisers. In total 65 licensees affecting 115 advisers have closed during 2022 to April 21, 2022.
Key summary points:
Accounting - Limited Advice (SMSF) models represented most closed licensees
Financial Planning models accounted for most advisers affected by the closures
Of the 115 advisers affected, only 25 were current as of April 21, 2022
22 of the 25 advisers that switched, were from the Financial Planning business models
3 - Total Resignations and Switches Dec 1, 2021 to April 21, 2022 (Dashboards 4 to 7)
We tracked the total number of resignations and analyse which sectors of the advice market gained switches including which licensee owners.
Key Summary Points:
A total of 2,556 resignations occurred and 683 advisers have switched and current as of April 21, 2022
Small licensee owners (less than 10 advisers) suffered the smallest losses in percentage terms and gained greatest number of switched advisers
The Financial Planning business model suffered least losses. The Accounting - Limited Advice model suffered significant losses of 98%, i.e. gained very few advisers that resigned
Details of licensee owners most affected by resignations and which gained switches is included in the dashboards
