Is AMP about to lose its mantle as largest adviser group?
The lead of AMP Financial Planning, the single largest financial planning group, over the second biggest license by adviser numbers in Australia, SMSF Adviser Network, has narrowed to only 70 advisers from 230 from the start of the year, according to data from HFS Consulting.
AMP FP once again topped the list for losses for the week with the departure of seven adviser roles this week which has brought the overall number of adviser roles being lost year to date to almost 250 (245) for the group.
According to HFS’s data, AMP FP had 911 adviser roles as of the first week of November while, at the same time, SMSF AN’s had 841 registered advisers as according to the Australian Securities and Investments Commission’s (ASIC) Financial Adviser Register (FAR).
By comparison, according to the Money Management’s 2020 Top Financial Planning Group’s ranking, which looked at the mid-year numbers in July, AMP FP had 1,000 authorised representatives who were engaged as financial planners at their primary role.
Following this, SMSF Advisers Network, which advertises itself as a flat-based fee model for accountants in practice, stressed that of all its close to 850 authorised representatives all were accountants.
According to 2019’s Top Financial Planning Groups’ ranking, AMP FP had 1,255 advisers on its books which gave it an advantage over the second biggest group of around 260 advisers.
Colin Williams, director at HFS Consulting, said that the fast approaching year-end also encouraged a closer look at licensees which were emerging as winners (measured by adviser growth).
“As we head into the close for the year, Lifespan continue to lead the way with a net gain of 61 adviser roles YTD, followed by Interprac with 48 and Sentry at 34,” he said.
“At a group level, (licensee owner may own more than one licensee) Castleguard Trust continues on in first position with 61 adviser roles, closely followed by Sequioa with 59.”
For the week ending 5 November, a total of 28 adviser roles were lost, reducing the total number of adviser roles to 21,399 and 21,051 ‘actual’ advisers which were defined by HFS as advisers associated to more than one licence, most likely within a group holding.
AUTHOR
Oksana Patron
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
