Financial Adviser Gross Revenue First Half of 2024 Fin Year
We have reviewed the financial statements of ASX Listed firms that provide financial adviser services. This is a follow-up to the review we did last September that covered the past financial year - See the post Financial Adviser Gross Revenue 2022-23
The data below is only for the first half of the 2023/24 year, and we have annualised the amount by simply doubling the revenue.
In summary, the range varies from $600,000 per adviser for one company, the same as reported for the full 2022/23 year, down to $284,923, which is a significant jump on the full 2022/23 year of $236,550. The median has increased to $446,480 from $393,050. The raw Average is at $493,936, an increase of over $30,000 on last year which was at $463,258.
The comparison is not a complete ‘like for like’ comparison to what we completed in September last year. This data is for the half year, while the previous data was a full financial year. However, it does provide good guidance as to where the revenues are heading with a jump in the median and averages.
The chart below is based on each ASX listed firm, and the results are a combination of all licensees owned by the firms. We have decided not to identify the individual firms, as revenue is not necessarily an important factor for all firms. For example, some firms charge a flat fee for their services. Culture fit, longevity, strong financial planning and business skills are all part of the equation when considering financial advisers for their firms.
All firms would have advisers who are above and below the averages. Many of the firms may also have advisers who are authorised to help complement their (advisers) broader business, and therefore their revenues may be lower than advisers who only provide financial advice.
The number of advisers, after averaging over the six months and discounted for staff (see notes below chart) is 3,600. This is down on the full 2022/23 year, which was at 3,856. The drop was mostly driven by a much higher starting point at the 2022/23 financial year.
Notes To The Data Collected and Adviser Numbers
We used the gross revenue for advice businesses. We did check in with the firms to confirm the data
To annualise the revenue, we simply doubled the gross revenue
Established an average number of advisers on the ASIC FAR by adding the number of advisers at the start and end of the period and dividing by 2. This number (in most cases) was discounted by 5% to allow for staff on the ASIC FAR who would not normally see clients directly. Where applicable, we also removed advisers restricted to SMSF advice
The annualised revenue per firm was divided by the average number of advisers to determine the average gross revenue per adviser
When firms bought / sold licensees, we completed a pro rata calculation for the number of advisers
The Median is the median gross revenue of the firms
*The Raw Average is the annualised total gross revenue of all firms divided by the total average number of advisers.
The total number of advisers, averaged over this period, was 3,600. The companies reviewed were; AMP, Insignia, Diverger, Sequoia, Centrepoint, Fiducian, Count and WT Financial Group.
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