Weekly Financial Adviser Movement, Dec 16, 2021
Number of Advisers decreased by (-126) from 18,572 to 18,446
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Key Movements This Week:
Net Change of advisers (-126)
31 Licensee Owners had net gains for 49 advisers
47 Licensee Owners had net losses for (-176) advisers
35 Individual Licensees had net gains of 68 (57 excluding Ord Group – see notes*)
58 Individual Licensees had net losses of (-184)
13 Provisional Advisers (PAs) added and 1 ceased. This indicates that (-139) experienced advisers dropped off the FAR this week.
Note: On dashboards 1A (licensees) and 1B (licensee Owners), you can ‘hover’ your cursor over each ‘bar’ in the charts and see more details.
Summary
A very busy week once again dominated by CBA with (-74) advisers leaving the group. CBA is now down to 37 advisers. At this stage, it is not clear if the advisers exiting CBA will reappear at AIA.
Note the name change of IOOF to Insignia. The name change also came with further losses along with AMP, both in double figures.
We did see quite a bit of movement at the self-licensed level, with 8 new and 6 ceasing. Of the eight new, 6 were classed in the holistic Financial Planning peer group and 2 as Investment Advice business. For the closures, none were providing holistic Financial Planning or Investment Advice.
*E.L. & Baillieu, owned by Ord Minnett are showing growth of 11 on dashboard 1A, licensees. However, all advisers are already licensed to Ord Minnett. As a result, we are not showing any growth at Ord Minnett group as the licensee owner on Dashboard 1B.
Growth This Week
Dashboard 1B - Licensee Owners. One new licensee (not shown in the dashboards, contact us for details) commenced with 4 advisers. 5 licensee owners had growth of 3 including Sequoia and HESTA Super. Centrepoint Group also plus 3, who continue to leverage advisers away from Mortgage Choice and this week taken more away from insignia. For the week Centrepoint hired 8 and lost 5.
Another 5 licensees had growth of 2 each, including 3 new licensees. 20 licensee owners had net growth of 1, including 3 new licensees.
Losses This Week
CBA Group (-74), Insignia Group, formally IOOF down (-20) and fellow conglomerate AMP also having a tough week, down (-13), with AMP Financial Planning dropping below 600 to be at 599.
Marsh Mercer down (-6) followed by Bell Potter down (-4) and Mortgage Choice continue to wind down also (-4).
Thereafter, there is a long tail of losses. As for the 6 closed licensees (down to zero advisers), they accounted for a total of (-10) advisers.
Year To Date Data
As we close out the year, there is a tendency to look for perceived winners and losers. We still have a few weeks to go and I suspect there will be a fair bit of reporting in January that will be backdated into December. That said, below is how things are sitting right now.
Financial advice has had a disappointing year, but not unexpected. Current loss of advisers at (-2,189) or (-10.61%). Worse is yet to come as losses of advisers pile up of those who either fail or opt not to attempt the FASEA Exam – We covered this off earlier in the week – see FASEA Exam Wrap For 2021. The losses for the year may end up close to (-3,500).
Dashboard 3 shows that different peer groups had very different years. The Investment Advice peer group (focus on portfolio advice) only had a loss of (-102) advisers or (-2.98%). The Accounting – Limited Advice (basically providing SMSF Advice) are down (-537) advisers or a whopping (-27.12%). We expect this peer group to suffer this greatest losses, at a proportional level, resulting from advisers not passing the FASEA Exam.
The largest peer group Financial Planning, were down (-1,303) or (-10.18%). What was significant for this group is the number of new licensees at 119 and (-45) closing. A net increase of plus 74. Easily the largest growth sector of the advice market.
As for individual companies, (Dashboard 1B) AIA because of the deal with CBA have the largest growth of 62 advisers. Oreana are the standout group with growth of 37. ASVW a new licensee at 19 and Centrepoint Group showing that large advice groups can grow, up by 19. The numbers for Centrepoint include the licensees associated with Clearview and are backdated to the start of the year.
As for losses, Insignia and AMP dominate and CBA in third spot after ceasing its retail advice arm.
As mentioned, we do expect a lot of movement of the next few weeks with numbers backdated into December, so we will revisit the tables for 2021 in January 2022.
Updates Over Christmas and New Year
We will be completing updates to the dashboards each Thursday and will be back to more complete updates starting from Jan 17. Until then we wish all our clients, subscribers, and regular viewers a Merry Christmas and Prosperous New Year.
“And remember this, while 2022 will be a different year, one thing won’t change - If you don’t have the data, you’ll be just another person in the room with an opinion”
