Number of Advisers decreased by (-6) from 15,874 to 15,868

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Key Adviser Movements This Week:

• Net Change of advisers (-6)

• Net Change of +57 for 2023

• 23 Licensee Owners had net gains for 31 advisers

• 31 Licensee Owners had net losses for (-40) advisers

• 2 new licensees and (-2) ceased

• 7 Provisional Advisers (PAs) commenced and 1 ceased.

Summary
A relatively quiet week with 69 advisers joining / leaving licensees. While the net loss was (-6) for the week, the number of the calendar year only dropped by (-2) to +57 as some resignations were backdated into 2022.

This week we take another look into New Entrants - Since mid 2022, hiring new entrants has become a core growth opportunity for many licensees.

Growth This Week

• Sequoia Group up by 3 with all advisers joining Interprac. All 3 from different licensees and 2 coming back after a short break.

• AMP Group up by 3 with two advisers from different licensees and one new Provisional Adviser

• A new licensee commenced with 2 advisers, (details given to Members) both moving away from Respect Financial Services

• Centrepoint also up by 2 with 1 adviser recommencing and 1 from another licensee

• 2 small licensees, Altitude and Innate up by 2 advisers each. All 4 advisers being new Provisional Advisers

• 17 licensee owners up by net 1 including Insignia, Perpetual and 14 licensee owners that have less than 20 advisers.

Losses This Week

• Count Group down by (-4) after a practice ceased and one of those advisers joining Consultum

• 6 licensee owners were down by net (-2) including Janus, NAB via 2 advisers leaving JBWere, and Ned Schepis (Respect Financial services), as mentioned earlier, 2 advisers moving to a new licensee. 1 licensee that ceased also lost 2 advisers.

• 24 license owners down net (-1) each including Clime, Fitzpatricks, Macquarie Group and Steinhardt (Infocus).

New Entrants
The number of new entrants to financial advice, initially as provisional Advisers, was very sluggish when first introduced in Jan 2019. However, we saw a dramatic improvement in the second half of 2022 which continues in 2023. Since July 1, 2022 some 233 new entrants have appeared on the FAR and over the same period, over all net growth has been (-324). This effectively means that the net loss excluding new entrants would be (-557), almost exclusively experienced advisers. Therefore, growth by new entrants is becoming to be a key strategy for growing licensees.

Below are a couple of charts from our Deep Dive dashboard - 6B Peer Groups which we have updated to include new entrants. In these charts, a new entrant is defined as someone who’s initial start date as an adviser, falls after the date selected, in this instance July 1, 2022*

The first chart is by Licensee Owners size. It shows that for licensee owners that currently have between 100 and 499 advisers have hired 55 new entrants, or 23.61% of all new entrants. However, it currently has 31.44% of all advisers, indicating that this segment is hiring less that the broader average.

The three largest licensee owners who have more than 500 advisers, have hired 51 new entrants or 21.89% which is higher than the percentage of all advisers in this segment at 15.81%. This was driven by AMP and Insignia both hiring 22 new entrants each and Centrepoint hiring 7.

Note: We have added New Entrants by Licensee Owner and Licensee on our Deep Dive Dashboards 1A and 1b - dates can be modified in the header.

The chart below is by our Business Models (Peer Groups). The largest business model is Financial Planning and that model has hired 69.46% of all new entrants which is just above the percentage of all advisers in the model at 66.61%. Accounting - Limited Advice, a model under stress since the introduction of FASEA, has not hired any new entrants. Super Funds are also a bit down on new entrants, this may well be driven by all the mergers across super funds.

Note: The total numbers on both charts do vary slightly, this is due to a small number of advisers who are authorised more than once and fall into different groupings

*For those who may track Provisional Advisers and see variance in the numbers, there are a small number who have an earlier start date in advice and have since rejoined as a Provisional Adviser.

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