AMP loses over 150 advisers in a year
Whilst micro-AFSLs’ numbers continue to grow, larger licensees including AMP and Insignia Financial are struggling to hold down their advisers.
According to research by Wealth Data, AMP lost 158 advisers since 11 May 2022, the highest loss any licensee had seen over the period.
This was followed by Insignia Financial with 122 losses and WT Financial Group who lost 101 advisers.
“This highlights the difficulty that large licensees have been going through. However, many of the losses have been to micro-AFSLs and they may well be buying services from the larger licensee owners,” commented Colin Williams, Wealth Data founder.
Last week, the research house reported Insignia’s adviser numbers had fallen to nearly 1,000, with the advice firm losing 72 advisers to micro-AFSLs over the years.
In the last 12 months, the remaining licensee owners had increased by 170 in total. MBS, who specialised in risk advice, topped the list with the highest growth of 18 advisers.
PSK Group followed with an additional 17 advisers, alongside Fortnum with 15 new advisers. Outside of the top ten, the remaining licensee owners lost 479 advisers.
Overall, there was a 348 net loss of advisers in the last year. However, 101 new licensees commenced with nearly all being micro-AFSLs with between one and four advisers, whilst 49 closed.
Looking at weekly data to 11 May, some 21 licensee owners had net gains for 26 advisers, while 20 licensee owners had net losses for 27 advisers.
A new licensee commenced with three advisers after leaving WTL Financial Group (Synchron).
Australian Administration Services (Link Group) increased by two, one being a new entrant and the other being an ex-WT Financial Group (Sentry) adviser.
Despite their overall losses, AMP were up this week by two after hiring three advisers. The firm gained two new entrants and lost one adviser.
Alexander Euvrard (Havana) were also up by two after hiring one adviser from Spark Advisers alongside another returning from a short break.
Overall, 17 licensee owners up by net one each, which included two new licensees; Count and AIA Company.
When looking at losses over the last week, FSSSP Financial Services (Aware Super) had decreased by three advisers, with none appointed elsewhere yet.
Five licensees down by two each, which included Findex, Ord Minnett, Choice Financial and Insignia.
Wealth Data noted that Insignia sold its AET business to EQT last year, but the Australian Securities & Investments Commission (ASIC) was still showing that Insignia owned AET.
Consequently, the firm benefited from seven advisers on the registrar. Their gain of five advisers this week was diluted by seven losses across other Insignia licensees.
Some 14 licensee owners had lost one adviser each, including Uni Super, WT Financial Group, Janus Financial, Sequoia and Steinhardt (Infocus).
The industry as a whole lost five advisers last week, alongside a net change of 43 advisers in the year-to-date. Over the last 28 days, the net growth had decreased from 71.
“Another week of losses which is disappointing,” said Williams.
AUTHOR
Jasmine Siljic
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It's obvious we want AFSL system reform and not just limited to QAR. We want to be independently registered like tax agents with our relevant body and operate independently without having to set up Micro AFSL's and jump through additional hoops. This needs to be addressed in the upcoming reforms. Michelle Levy avoided it, and the ALRC is probably going to do the same due to vested interests. This will reduce costs to Advisers and in turn, lessen the costs to consumers as Advisers can run low-cost business models to service various niches.