Advice industry grows but major AFSL loses 4 advisers
AMP bid farewell to four financial advisers last week, as the wider advice profession enjoys a net gain.
According to Wealth Data, overall adviser numbers increased by a net of five in the week ending 29 August – underpinned by 10 new entrants joining the profession. This brought the industry to 15,512 in total.
Three new licensees commenced operations and zero ceased, while 69 advisers were busy with appointments or resignations.
Despite the positive result during the week, AMP reported a loss of four advisers with none showing as being appointed elsewhere.
The firm is set to see its advice licensees and Jigsaw self-licensed offering acquired by Entireti for $10.2 million by the end of the calendar year 2024. Meanwhile, AZ NGA will acquire minority stakes held by AMP in 16 practices for $82.2 million.
Alexis George, AMP chief executive, previously described: “It’s a big decision for AMP, it’s a big decision for the industry and will change the shape of the industry, but we believe it’s the right thing to do for our advice industry and the people in it and our shareholders. Things are changing and evolving.”
Looking at overall declines, 20 licensee owners had net losses of 36 advisers in total. This was led by Maven Capital which lost seven advisers. Five of which moved across to Lifestyle Asset Management and the remaining two have yet to be appointed elsewhere.
Financial Services Group bid farewell to five advisers, with all not displaying as appointed elsewhere yet. Capstone Financial Planning declined by three, Pareto Group lost two, and 15 licensees were down by one adviser each, including Rhombus Advisory and Lifespan Financial Planning.
In terms of adviser growth over the week, 34 Australian Financial Services Licensees (AFSLs) had net gains of 41 advisers. As mentioned, Lifestyle Asset Management welcomed five advisers to its ranks from Maven Capital.
Bombora was up by three advisers after two advisers joined from Pareto Group, alongside one new entrant. Picture Wealth increased by two advisers, including one from Wealth Today, owned by WT Financial Group, and one new entrant.
A long tail of 31 AFSLs gained one adviser each, such as Morgans, Count and Viridian Advisory.
Wealth Data analysis recently discovered that the number of new entrants in the advice profession who departed in the first three quarters of this year has seen an improvement from the amount that left in 2023 – from 10 per cent down to 1 per cent.
According to two advice professionals, there are two key drivers leading to higher retention of new advice entrants: well developed professional year programs and flexible working arrangements.
AUTHOR
Jasmine Siljic
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