New data points to homeless or exiting advisers

Adviser-Ratings/financial-advisers/advisers-exit-industry/financial-advice/

26 April 2019
| By Mike |
image
image
expand image

While 336 new financial planning licensee entities have been created over the past 12 months, 118 licensees have been discontinued affecting 2,000 advisers, two-thirds of whom have yet to find a new home or may have exited the industry.

That it is bottom line of the latest data issued by Adviser Ratings who said the 18 discontinued licensees represented a total of 2,172 advisers or around 10 per cent of the total advice community.

“Nearly two-thirds of these advisers are yet to be re-licensed,” it said. “Of the 2,172 advisers effected, 1,392 are still not advising, inviting speculation that many of these advisers have left the industry for good.”

The implications of the data were made clear by Adviser Ratings when it said that the median time for an adviser to be unlicensed prior to getting back in the industry was, normally, just 37 days and that only 36 per cent of affected advisers had thus far found new homes.

It said that of those advisers who had gone to new homes, the vast majority had gone to privately-owned licensees and that of these advisers, nearly nine out of 10 had joined privately-owned licensees who were not owned or affiliated with the traditional large financial institutions.

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 1 week ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks 1 day ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

2 weeks ago

One licensee has lost 27 advisers in the past week, now sitting at zero, according to the latest Wealth Data figures....

3 weeks 1 day ago

TOP PERFORMING FUNDS