Financial Adviser Insights, June 6, 2024
Adviser Numbers This week - Decreased by (-16), Moving From 15,622 To 15,606
Weekly Summary
Financial adviser numbers went negative for the week and the second week in a row at (-16). Due to the loss, the Calendar YTD also slipped into the red, now at (-9). As we enter the least month of the financial year, we have included analysis of the volatility that occurs over June and July.
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Key Adviser Movements This Week:
Net change of advisers (-16)
Current number of advisers at 15,606
Net Change Calendar 2024 YTD (-9)
Net Change Financial YTD +50
17 Licensee Owners had net gains of 28 advisers
28 Licensee Owners had net losses for (-45) advisers
Two licensees commenced and five ceased
3 New entrants
Number of advisers active this week, appointed / resigned: 73.
Growth This Week - Licensee Owners
A new licensee commenced with six advisers, with a practice leaving Lifespan and commencing their own AFSL
Sequoia Group up by three, with two advisers from different licensees and one coming back after a short break
Four licensee owners up by two:
Troy Daniel Mahoney (Australia National Investment Group), one adviser from AAN Wealth and another coming back after a break of a few months
Insignia appointing three, two from Infocus, and one new entrant and losing one adviser who is not showing as being appointed elsewhere
Cobalt Advisers, with both advisers switching across from HNW Planning
Centrepoint Group, picking up two advisers from Millenium 3 now owned by WT Financial Group
A small tail of only 11 licensee owners up by net one each including, Nextplan Financial, Fortnum and Lifestyle Asset Management.
Losses This Week - Licensee Owners
Lifespan down by seven after losing six advisers to the new licensee mentioned above and once who is not showing as being reappointed elsewhere
Three licensee owners down by three:
Bannister Consulting (Sira Group) - None showing as being reappointed
Sullivan Dewing - None showing as being reappointed and the licensee is down to zero
WT Financial Group, as mentioned above, losing two to Centrepoint, two more advisers ceased but not appointed elsewhere to date and appointed one adviser who came across from Next Generation Advice.
Five licensee owners down by two including AAN wealth, Capstone and Count Limited who also dipped to below 700 advisers, now at 699
A tail of 19 licensee owners down by net one including Canaccord, Morgan Stanley and Viridian Group.
Volatility Ahead
June is a volatile month for adviser movement. To put this into perspective, this financial year to date, the numbers are showing a positive +50, which is great. However, if we look at the last 12 months, i.e. including most of June last year, the number is a negative (-192).
Many advisers opt out in the last few days of the financial year and others decide to switch licensees. Often ceasing at one licensee in June and joining the new licensee in July.
On the upside - as shown for the previous corresponding periods, the numbers are a great improvement. The previous financial YTD at this same time last year was (-389) and the previous full 12 months was (-623).
Financial YTD +50
Last 12 Months (-192)
A Deeper Look - For our business models that provide broader advice*, the financial YTD is at +117 and for the past 12 months is at (-111).
For models that provide restricted / limited advice, the financial year to date is at (-61) and for the past 12 months is at (-75). The current number of advisers in licensees that provide restricted / limited advice is currently at 689. Despite the small number, they have been a drag on the total net movement of advisers.
*Broader Advice Business Models:
Financial Planning - Largest model with licensees offering holistic advice
Investment Advice - Licensees that provide mostly investment / portfolio advice
Super Funds - Advisers attached to mostly industry super funds
Accounting - Financial Planning - licensees owned by accounting and advisers providing holistic advice.
Retail Funds Bounce Back
APRA's latest data to March 2024 reveals key shifts in the superannuation landscape:
Retail funds do it again: For the second quarter in a row they outperform their peers for investment returns
Industry funds see increasing SMSFs Net losses: Transfers to self-managed super funds (SMSFs) are accelerating for Industry funds.
Pension payments for Industry funds: rapidly increasing
Advisers benefit: The strong quarter for superannuation across the board presents growing opportunities for financial advisers.
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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.