Financial Adviser Insights, June 20, 2024
Adviser Numbers This week - Decreased by (-8), Moving From 15,597 To 15,589
Weekly Summary
The number of financial advisers continues to decline as the fiscal year draws to a close. This week, there was a net decrease of eight advisers, bringing the total to 15,589.
There were no new licensees for the second consecutive week, and one ceased operations. We anticipate new licensees to emerge during the initial weeks of the new fiscal year. However, activity has declined; please refer to the post for further details.
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Key Adviser Movements This Week:
Net change of advisers (-8)
Current number of advisers at 15,589
Net Change Calendar 2024 YTD (-26)
Net Change Financial YTD +33
15 Licensee Owners had net gains of 22 advisers
20 Licensee Owners had net losses for (-29) advisers
No new licensees commenced and one ceased
5 New entrants
Number of advisers active this week, appointed / resigned: 56.
Growth This Week - Licensee Owners
Australian Retirement Trust gained six advisers. All from different past licensees and most coming back after a break from advice.
Identity McIntyre Pty Ltd (IMFG) up by two advisers, both being new entrants
Centrepoint Group also gained two advisers. Hiring three advisers, two were previously with Viridian and one adviser from Morgans. Lost one adviser who has not yet been appointed elsewhere to date
A small tail of 12 licensee Owners up by net one each including Steinhardt Holdings (Infocus), Telstra Super and Koda Capital.
Losses This Week - Licensee Owners
Count Limited are down by six advisers, losing three from Merit Wealth and one from GPS, none showing as appointed elsewhere. Lost one from Paragem who joined Koda Capital and one from Count who joined VIAFGA (LRM Wealth Management)
Silowe Pty Ltd (Sustainable Life Solutions), down by three and none showing as appointed elsewhere
Williams Buck also down by three, none showing as appointed elsewhere
17 Licensee Owners down by net one each including Shaw and Partners, MIQ Capital and Fortnum.
Members Lounge - Menu Pages Included For Key Dashboards
We have now created menu pages for our most popular dashboards. - To see the full menu of each, click on the image to expand the view.
Adviser Fast Facts Menu Page - Click Image To Enlarge
Licensee Deep Dive Menu Page - Click Image To Expand
New Licensees - Have They Topped Out?
As mentioned in the weekly summary above, there has been no new licensees commencing for the past two weeks. We expect a correction in the first weeks of reporting in July, as typically this is the time many advisers start their next stage of their business by taking out their own AFSL.
By examining the last 12 months which covers off the volatility of the end of June, start of July (data below). The data, for all business models in our database, shows that the number of new licensees is at 115 and ceased licensees at (-89) giving a net change of +26. The numbers are a bit down on the previous 12 months which showed new licensees at 128, ceased at (-91), giving a net change of +37.
Movement For Past 12 Months - Compared To Previous 12 Months - All Business Models
The data below has been filtered to include only the three main business models that provide mostly holistic / investment advice. The business models chosen created 109, down by 18 compared to the previous year of 127. Ceased licensees are at (-74) versus (-64). The net change for the past 12 months comes in at +35 (109 - 74) versus +63 (127 - 64) for the previous 12 months, a considerable difference.
Data For Three Main Business Models That Provide Mostly Holistic / Investment Advice
We know from previous research that some of the firms ceasing are due to mergers and acquisitions. However, the trend of new licensees is slowing and given the number that commenced a few years ago, it’s not surprising that some of these are now coming to an end.
Financial Adviser Landscape - Presentation - Free Download
Last week, I presented at the FNW ‘Advice, Wealth and Super Rewired’ conference. Below, you can access the presentation for free. There are a number of charts that cover:
Financial Adviser Movement back to 2017
Calendar YTD movement including most growth / the least growth firms
Share price movement over five years of ASX listed firms associated with financial planning / wealth
The growth and impact of Micro AFSLs
New entrants - year by year
Gross revenue of advisers
Adviser opportunities - Growth of super and much more.