Financial Adviser Insights, March 21, 2024
Adviser Numbers, Increased by +2, Moving from 15,618 to 15,620
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Summary for the week
A positive week, driven in part by five new entrants. Centrepoint had a big week with a net increase of nine advisers, more details below. Three new licensees, all single adviser ‘micro AFSLs’.
Key Adviser Movements This Week:
Net change of advisers +2
Current number of advisers at 15,620
Net Change of +4 for Calendar 2024 YTD
Net Change Financial YTD +65
24 Licensee Owners had net gains of 36 advisers
25 Licensee Owners had net losses for (-33) advisers
3 licensees and 1 ceased
5 New entrants.
Number of advisers active this week, appointed / resigned: 79.
Growth This Week - Licensee Owners
Centrepoint were up by net 9 advisers, with 8 advisers joining their Alliance Wealth licensee and 1 new entrant joining Matrix. Of the eight that joined Alliance Wealth, 4 came across from Millennium 3, now owned by WT Financial group, and one adviser each from Oreana, Count, Charter (AMP Group) and Insight Investment Services owned by Picture Wealth. The increase of 9 advisers now has Centrepoint as +25 for calendar YTD and the leading ‘organic’ growth licensee owner.
Australian Administration Services (Link Group), who focus on providing advisers to superannuation funds, up by net 3. All 3 advisers coming from different licensees
Capstone up by 2, gaining one adviser each from Fortnum and RI Advice
Alexander Euvrard (Havana Financial Services), also up by 2, with one adviser each from Affinia (now part of Count) and NKH Knight Holdings.
20 licensee owners up by net 1 each including Insignia, Bombora, Ord Minnett and PSK.
Losses This Week - Licensee Owners
Three licensee owners down by net (-3):
AMP Group appointed 2 new entrants but lost 5 advisers, none have been appointed elsewhere
Count Limited gained 1 adviser, but lost 4
and WT Financial Group also gained 1 adviser and lost 4
Macquarie Group down by (-2) and both are yet to be appointed elsewhere
Sequioa also down by (-2), with one adviser joining Zurich Assure and the other not showing as being appointed elsewhere.
20 licensee owners down by net (-1) each, including Shaw and Partners, NTAA and Spark Partnership.
How Are New Entrants Progressing?
There has been a solid push over recent years to have more new entrants join the financial advice sector. The rules post 2018 now require new advisers to undertake a more rigours path to becoming a financial adviser, but is it working?
The table below highlights advisers who commenced from 2019 onwards. It shows that in 2019 a total of 30 new entrants commenced. However, only 10 or 33% are still current on the FAR.
Each year has improved significantly, with 2020 showing that 54 or 73% out of 74 new entrants are current. A big spike in new entrants from 2021 onwards and the percentage still current, at over 80% is encouraging.
Licensee Deep Dive Dashboard 8A - New Entrants By Year
Prior to 2019, there was a made rush of new entrants in 2018 who joined the FAR to avoid the new rules for becoming an adviser. In total, for 2018, there were 4,970 new entrants (not shown in table). However, only 1,676 are still current, or 34%.
I don’t believe we have enough new entrants and history to tell us if the new approach for becoming an adviser is successful. The last few years of data indicate a higher percentage of new entrants are remaining current, which is good to see. However, the number of new entrants are low, indicating a higher set of barriers to entry now exist and restricting the opportunities to attract new advisers.
Dashboard 8B highlighted above is new. The dashboard also includes a breakdown by licensee owners. The years can be modified by the user.
SMSF Statistics - PowerPoint Deck
Our SMSF Statistics, which include some adviser data to demonstrate the current opportunity for advisers, is now available as a PowerPoint deck. This could be of value to better understand the SMSF marketplace and could be an ideal source of charts if you need to create your own SMSF deck or reference SMSF data and trends in a report.
The SMSF presentation is available at our newly created store page - click here for the store
If you need a comprehensive set of SMSF and other Superannuation and adviser data, become a member. Our dashboards are mostly interactive, allowing users to alter time frames and much more. See below to join and how to claim a 50% discount for the first month of membership.
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