Weekly Financial Adviser Movement, Nov 17, 2022
Number of Advisers decreased by -3 from 15,902 to 15,899
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Key Adviser Movements This Week:
Net Change of advisers -3
25 Licensee Owners had net gains for 29 advisers
26 Licensee Owners had net losses for (-30) advisers
2 new licensees “re-commenced” and (-3) ceased
8 Provisional Advisers (PAs) commenced and none ceased.
Summary
The number of advisers has well and truly steadied over recent weeks. The net numbers have been helped by a regular stream of new entrants (see more below). Closed licensees are small 1 adviser models and mostly associated with the restricted Accounting - Limited Advice business model.
Growth This Week
At the licensee owner level, 4 gained a net 2 advisers each. Beryllium Advisers picked up two advisers from Capstone Financial Planning. Andrew Wardle (Astute Planning Services) picked up two advisers from Madison AFSL owned by Clime. Affinity Group also up 2, one adviser coming back after a break and the other from Viridian. AMP group also up net 2 advisers, picking up 3 advisers and losing 1. For AMP one adviser is Provisional Adviser, 1 from AIA and the remaining adviser coming back into advice after a break since 2018.
21 licensee owners are up net 1 including both new licensees that effectively restarted after recently going to zero advisers. Licensee owners up net 1 include, Spark Partnership, Oreana, Evans Dixon, Fortnum and Fiducian.
NOTE: At the licensee level, Dashboard 1B, you will see Connectus Australia are up net +5. The advisers are still authorised at another licensee also owned by Connectus. Over recent times, Connectus has been investing in advice firms and most still operate under their own AFSL.
Losses This Week
Clime tops the losses at (-3), as mentioned losing 2 advisers to another licensee. MCA Financial Planners and NGAA Pty both down by (-2). A tail of 23 licensee owners down (-1) including each of the 3 closed licensees. Insignia also down (-1) after taking on 2 Provisional Advisers and losing 3 experienced advisers.
New Entrants - 2022 - Dashboard 8 from Licensee Deep Dive Series.
The chart below highlights a running total of 355 new entrants for 2022. This is made up of a combination of Provisional Advisers and ‘advisers’ with a formal start date of 2022. Important to note that some of the ‘advisers’ may well have been appointed as Provisional Advisers before 2022.
While the numbers may be considered low by industry observers, it is a good jump of new entrants to what we had in the prior years. For context, the number of 355 new entrants would make this cohort the third largest licensee in the country. Of interest, AMP group have 23 (of the 355) which represents 2.39% of all their advisers, followed by Insignia at 22 (2.03% of their advisers). Fortnum at 10, which is 4.5% of all of their advisers.
Note: Combination of all new entrants for 2022
5 Star Advisers - Who and where are they?
Last year we developed a ‘star rating’ for advisers and licensees. Stars are allocated by the following *system: 2 Stars for advisers who commenced more than 10 years ago, 1 star for commencing between 5 and 10 years ago. 1 star for a ‘degree’ qualification (under qualifications and training) and 1 star for an AQF qualification (approved degree). The remaining star is for an adviser that belongs to a recognised association such as FPA, SMSF Association and the Stockbrokers and Investment Advisers Association.
Licensees are given a star rating by adding up all the stars given to their advisers and divided by the number of advisers. For example, if a licensee had 100 advisers and total stars of 300, their rating would be 3.
There are some 828 five star advisers which is approx 5.2% of all advisers. The image below highlights that the Super Fund based advisers have the highest proportion at 13.32%. The same business model (Super Funds) has an average rating of 3.05, slightly higher than Financial Planning model at 2.98.
Average Star Ratings by Business Model and % of 5 Star Advisers - Dashboard 5B Licensee Deep Dive
What should be of interest for businesses seeking 5 star advisers advisers / higher rated licensees, is that they may well want to go looking for small licensees. The first chart (on left) below is for all licensees that have 5 or more advisers. It can be seen that the Financial Planning model is showing an average score of 2.94.
The next chart (on right) is for all small licensees with between 1 and 4 advisers and the Financial Planning model score goes up to 3.19. This indicates that small licensees have a higher proportion of experienced and qualified advisers. Both charts from Licensee Deep Dive - Dashboard 5A
Licensees 5 to 100+ Advisers
Licensees 1 to 4 Advisers
*Note: We often get told that some of the calculations are not correct as their AFSL is not regularly updating adviser details on the ASIC FAR. While this may be true, it is a valuable guide and we include a breakdown of the calculations to our members. We strongly recommend that licensees do update their adviser details as all the details are available, to the public, via the ASIC Moneysmart website. This website is very popular and adviser could well be disadvantaged if a client / prospect decides do do their own research.
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