Adviser Numbers This Week, Net Change of (-11), Moving Down from From 15,701 to 15,690

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This week saw a net drop of (-11) advisers, despite 9 new entrants. This indicates that 20 more experienced advisers exited the field. Additionally, 4 new licensees have started operations.

Key Adviser Movements This Week:

• Net Change of advisers (-11)

• Current number of advisers at 15,690

• Net Change of (-109) for Calendar YTD

• Net Change Financial YTD +130

• 20 Licensee Owners had net gains for 27 advisers

• 28 Licensee Owners had net losses for (-39) advisers

• 4 New licensees and 3 ceased

• 9 New entrants.

• Number of advisers active this week, appointed / resigned: 84

Growth This Week - Licensee Owners

• AAN Wealth Management gained 3, after appointing 4 and 1 resigned. All 4 appointments came from different licensees

• 5 licensees owners had net gains of 2 each including:

  • PSK Group, both advisers, moving across from Charter owned by AMP

  • Koda Capital welcomed 2 new entrants

  • FMD Financial and Findex both gaining 2 new entrants each

  • A New licensee commenced with 2 advisers, both formerly with AMP Financial Planning

• A fairly short tail this week of 14 licensee owners up by net 1 each including the remaining three new licensees, WT Financial Group, Fortnum and Australian Advice Network.

Losses This Week - Licensee Owners

• FSSSP Financial (Aware Super) down by (-5), bringing YTD losses to (-20) or (-14.08%.). The Super Fund Based Advice model is showing a net loss of (-53) for the year, or (-7.03%).

• AMP Group and Centrepoint both experienced a decrease of (-3), losing 4 advisers and gaining 1 each.

• Morgan Stanley lost 3 advisers, none appointed elsewhere to date.

• NTAA down by (-2)

• A tail of 23 down by (-1) each including Count Group who continue to transition advisers from Affinia to Count Financial, Diverger, Morgans and Viridian Group.

Adviser Experience Pre and Post FASEA
The introduction of the Financial Adviser Standards and Ethics Authority (FASEA) on Jan 1, 2019, marked a significant milestone for the industry. The start date was critical for those considering a career in advice, as there were distinct advantages to commencing as an adviser before Jan 1, 2019, and being on the ASIC Financial Advice Register (FAR).

Since FASEA's introduction, the adviser count has dropped from 27,982 to 15,690, a substantial loss. This raises the question of how adviser experience has been affected, which yields an intriguing insight.

The departure of many advisers means a loss of thousands of years of collective experience. For example, among the 13,933 advisers lost, the average experience was 15 years each. Surprisingly, the current average experience for the 15,690 advisers stands at 15.5 years each. Members can see details at dashboard 11 of Deep Dive Dashboards.

The chart below illustrates the number of advisers who were active on Dec 31, 2018 (Blue Bars) compared to current advisers (Yellow Line). Notably, Provisional Advisers are included as a 'null' entry with a total of 334 as technically, they are not classified as an adviser.

A few standout observations include the decline in advisers who commenced in 2018, from 4,184 to 1,562. However, there's a recent uptick in new advisers for 2023, with 256, plus an additional 334 Provisional Advisers in training.

The year 2016 marked a significant shift, allowing accountants to join the ASIC FAR. Of the 2,677 active in 2018, only 904 remain today, approximately one-third. This context is even starker for Accountants Limited Advice, where the number dropped from 1,107 to 258.

Going back further in time, the losses as measured in the difference between the blue bar and yellow line tend to follow a similar path, albeit the yellow line at a lower level.

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