2023 sees dramatic slowdown in adviser losses
Adviser losses have dramatically slowed this year compared to the start of 2022 when there was a net loss of more than 1,700 advisers.
According to Wealth Data, there was a net change of 10 advisers between 22 December and 12 January. Some 31 licensee owners had net gains of 47 advisers and 35 licensee owners had net losses of 57 advisers. Four licensees were net and four ceased.
This compared to a net loss of 1,710 over the same period in the previous year and 328 licensees dropping to zero advisers.
Wealth Data founder, Colin Williams, said: “Last year was a bit crazy. There was the initial drop off at the end of December and then a 'drip feed' during the year as mainly smaller AFSLs were very slow to report losses. Most of those losses were eventually backdated into Dec 2021.
“[This was] a much better start to the year to what we faced in January 2022 which was smashed by the then-FASEA exam requirements. Encouraging to see the ongoing hiring of provisional advisers into the new year.”
Aware Super and APT Wealth both picked up four advisers, all of which were provisional advisers, while Bluewater picked up four from MCA Financial Planners. This meant Victoria-based MCA now had only one remaining adviser and had "all but disbanded”, Wealth Data said.
DFS No 1 (My Fortress) and Arisia (Clover Financial) both picked up three while WT Financial Group was up by two.
A tail of 23 licensee owners were up by a net one including Fortnum, Fiducian and ASVW.
AMP was down by five advisers, four licensees were down by three including Industry Super Holdings and Sequoia and another four were down by two.
AUTHOR
Laura Dew
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I'm not sure why you're surprised at the slowdown. Those that had to leave (licencee bullying / FASEA deadlines) had to go by 31/12/22. Those that managed to get through the ridiculously written FASEA entrance exam, but were shell shocked by the process, are planning to leave before the next FASEA deadline. We're losing all our expert risk advisors. And those of us remaining have given up writing insurance as its a loss leader. Well done to the buracrats who engineered this little perfect storm.
Really !!! Of course its slowed down ! At least until January 1st 2026 when the most experienced advisers sell up or walk away. Instead of the "micky mouse" exam being a 3.5 hour marathon why cant we have the advisers who have not passed yet do exams and tests along the same lines as we do the current KAPLAN style point accumulation.
Many advisers who are fantastically enabled to look after client with great shill and care" crumble" in a set exam. Something needs to change or the industry WILL be decemated in 2026 with mass exodus occuring