Financial Adviser Insights To April 13, 2023
Adviser Numbers This Week Increased By +1, From 15,871 to 15,872
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Key Adviser Movements This Week:
Net Change of advisers up by +1
Net Change of +65 for 2023 Calendar YTD
20 Licensee Owners had net gains for 27 advisers
19 Licensee Owners had net losses for (-25) advisers
4 new licensees and 1 ceased
4 New Entrants*
Number of advisers active this week appointed / resigned: 59
*We will now focus on ‘New Entrants’ as opposed to Provisional Advisers each week. A new entrant is defined as an adviser’s first appointment date recorded this week on the ASIC Financial Adviser Register (FAR).
Summary
A quieter week which may have been impacted by the Easter holiday. Only 4 new entrants and a total of 59 advisers were either appointed / resigned during the week. Four new licensees and 1 ceased.
Growth This Week
Sequoia Group up by +4. As indicated last week, when they were down by (-5), it was the timing of switching advisers from their licensee Libertas which is being closed, to their main licensee Interprac
A new licensee commenced with 4 advisers. The advisers are from Synchron
Licensee owner Alexander Euvrard (Havana Financial services) up by 2 with both advisers coming from Libertas (Sequoia)
17 licensee owners were up by net one including Janus financial, Clime, and AIA. The three remaining new licensee were also 1 adviser firms.
Losses This Week
Insignia down by (-4), with 5 resignations and one adviser appointed. Of the resignations, 1 has been appointed at Akambo, owned by Janus Financial
WT Financial Group down by (-3) after losing 4 advisers at Synchron and gainin1 adviser at Sentry Advice
Diverger down by (-2) and both advisers showing as ceased and both from Merit Wealth
16 licensee owners down by (-1) each including Count Group, AMP Group, Morgans and Perpetual
Experienced Pathway Degree - How Many Advisers Could it Affect?
Last year, many in the financial adviser community were excited by an announcement that the government would introduce an ‘experienced pathway’. Essentially, advisers who had ten years experience between Jan 1, 2004 and Jan 1, 2019 may be exempt from needing to attain an approved degree by Jan 1, 2026. See Financial Newswire Article Aug 24, 2022.
The announcement had mixed reviews from the adviser community - see comments that have been left with the article.
Since the announcement it has all gone very quiet so we decided to revisit how many advisers could be potentially benefit from the opportunity.
To benefit from the proposed experienced pathway, the adviser must have commenced Pre Jan 1 2009 as a minimum. The chart below highlights that there are 8,239 in this category and 5,073 or 61.57% have a *degree of some description. This means that 38.43% of advisers who commenced pre 2009 do not have a degree on the FAR or 3,166 advisers.
Many of the 3,166 may well be progressing towards a degree, we just don’t know. But for those who have not commenced, time is running out. An approved degree generally requires 3 years of study - so it would be very difficult to complete a degree by the end of 2025 and work at the same time.
Advisers Pre and post 2009 and % with a degree
Note: Data from our Deep Dive set - Dashboard 4B - Modified for this post. Users can see details for each AFSL
When we break the numbers down further, there is, not surprisingly, a correlation between adviser start dates and the percentage of advisers who have a degree. The chart shows that for advisers who commenced pre 1999, only 1,256 have a degree or 51.50%. Whereas 77.53% of advisers who commenced post 2009 have a degree
Degrees grouped by years started as an adviser
*The degree may or may not be an approved degree. For this exercise we assume that even if it is not approved, the advisers with a degree would most likely be in a position to gain an approved degree, often only a bridging course is required.
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