Adviser Numbers This Week Increased By +1, From 15,870 to 15,871

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Key Adviser Movements This Week:

• Net Change of advisers up by +1

• Net Change of +66 for 2023 YTD

• 44 Licensee Owners had net gains for 50 advisers

• 32 Licensee Owners had net losses for (-48) advisers

• 4 new licensee and 3 ceased

• 24 New Entrants*

• Number of advisers active this week appointed / resigned: 120

*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 net gain of only 1 adviser suggests a quiet week. However, some 120 advisers have been affected with 24 new entrants, 4 new licensees and more losses for some major licensees. With 24 new entrants but only a net gain of 1, indicates that 23 experienced advisers have ceased on the ASIC FAR.

Growth This Week

• Bell Financial Group up by +3 with 2 of the new recruits being new entrants

• Ord Minnett Group up by 2 with both advisers coming across from JBWere

• Evans Dixon and Blue Rock 2020 both up by 2 and all advisers are new entrants

• A new licensee commenced with 2 advisers, both ex Affinia (now part of Count Group) - Details provided to members

• A total of 39 licensee owners up by net 1 each including the remaining 3 new licensees, Sambe Investments, Perpetual, Diverger and Steinhardt Holdings (Infocus).

Losses This Week

• Insignia down by (-5), with 3 of the 5 advisers switching to new licensees

• Sequoia Group also down by (-5). Most of the losses at its licensee Libertas and they may well reappear next week as Sequoia transition advisers from Libertas to Interprac

• WT Financial Group down (-4), 2 each from Synchron and Sentry

• Centrepoint down (-3), losing 4 and appointing 1

• 3 licensee owners down (-2) including one closed licensee

• 25 licensee owners down (-1) each including AMP who had a busy week appointing 6 advisers including 2 new entrants but losing (-7). Note: AMP Financial Planning the largest individual licensee on the ASIC FAR is now at 508 advisers and in danger of dropping below 500 very soon

• Other licensee owners down by (-1) include Capstone, Highfield Group and Bombora.

The FAAA Potential Membership - Opportunities and Threats
Under the new FAAA (merged entity of FPA and AFA) will start formally enlisting new members as existing members of the FPA and AFA renew their membership into the merged FAAA entity. Most of this will occur by June 30th as per April 3 statement from FPA / AFA.

We decided to revisit membership rates across the advice models and licensee groups. In theory, if all current members of FPA and AFA transition, FAAA will secure a *potential 56% of all current advisers on the FAR or 8,835 advisers. The vast majority of the potential FAAA advisers at 6,988 sit in our Financial Planning business model at 66% of all those advisers.

When we look only at the Financial Planning business model and split between advisers who commenced before 2013 it is at 75% and only 46% for those advisers who commenced post 2013. This indicates that the FAAA has some work to do with newer advisers.

When we dig a bit deeper in this business model, the FAAA potential is at 60% for licensee owners that have between 20-49 advisers up to a high of 71% for the three licensee owners that have 500+.

At the licensee owner level, the results are more wide ranging - see chart below. Insignia at 79% and Centrepoint at 82% have a high potential membership, whereas AMP Group is much lower at 56%. Sequoia is the lowest at 44%.

The charts indicate that the new FAAA may have a big opportunity but not without risks. No doubt other associations will be hoping that this is a good time to extend their reach. We are seeing a greater number of advisers seeking to start their own AFSL, with another four starting this week. Any association must be able to deliver a proposition that is flexible enough to appeal to all types of advisers working in very different licensees.

*Potential - Assumption if all current AFA and FPA renew their membership into the new FAAA. Data extracted from the ASIC FAR and is reliant upon each licensee entering the correct membership details for their advisers.

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