Advisers ceasing at twice the rate of new entrants
The number of advisers who have ceased during 2023 is at 365, more than double the new entrants over the same period.
This represented 2.3 per cent of total advisers on the Financial Advisers Register (FAR) at the start of the year.
Research by Wealth Data, which measured the data from 1 January to 30 May, found 136 of these had commenced as an adviser pre-2010 and another 133 commenced between 2015 and 2018.
Some 61 had commenced between January 2010 and December 2014 and the smallest volume (35 advisers) had commenced post-2019, 12 of whom were provisional advisers.
The numbers compared to 146 new entrants over the same period.
If the data was extrapolated to cover the full 12 months of 2023, Wealth Data said the industry would see 876 advisers cease that would represent 5.5 per cent of the advisers.
This would be 876 advisers or 5.5 per cent of the advisers who were on the FAR at the start of 2023.
Wealth Data founder, Colin Williams, said: “It is a good time to do this exercise as all of the advisers that have ceased would have passed the financial (FASEA) exam. In addition, advisers who may have been considering retirement due to the need to gain an approved exam, would have known that an experienced pathway will be expected during 2023.
“We may see some of these advisers come back — the data is simple a ‘point in time picture’. However, we can also expect more resignations.”
Looking at the weekly data over the week to 1 June, there was a net change of -15 advisers. Some 14 licensee owners had net gains for 20 advisers, 25 licensee owners had net losses of -26 advisers, while two new licensee commenced and one ceased.
Industry Super Holdings was up by net four advisers, Mercer was up by three, and Ashley Hann (Planet Money) was up by two, both from AMP Financial Planning.
Wealth Data noted that AMP Financial Planning had gained three and lost three this week and were close to less than 500 advisers; it currently stood at 501 advisers.
On the losses side, Infocus lost six advisers and was down by 22 since the start of the year.
Six licensee owners were down by net two each including Australian Unity, Insignia, and Sequoia while 18 were down by one each.
Williams said: “A net loss of 15 advisers this week bringing down the net gain YTD to just 14. We are expecting at least six advisers coming back onto the ASIC FAR very soon as they transition to a new AFSL.”
AUTHOR
Laura Dew
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365 is normal attrition for the industry. I think Colin can stop doing these weekly updates.
The issue is the replenishment - a long lead time - something which is well known.
He states that some of the older advisers who left may come back! in whose lifetime? What absolute rot. Leaving the profession involves complex calcs, negotiations and end-of-career moves in selling a client base. It isn't generalloy something you "come back from" to a profession such as this. Anyway, what retired experienced adviser in his/her right mind would RE-involve themselves in the current non-profitable idiocy around compliance, FARCE-IA exams and unpredictable politicians changing the rules at a whim simply for soundbites and re-election purposes. This is especially true for the specialist risk adviser. You would have to be completely mad to leave retirement and get back into that 'hot-mess'. It will all be over for the thinking adviser by 2026 though, the writing is on the wall in technicolour - go ahead and do the calcs yourself . . .