FAAA member numbers hit the ASIC FAR

There are 7,851 financial advisers who are members of the Financial Advice Association Australia (FAAA) now reflected in the ASIC FAR, comprising 49.9 per cent of the register.

It falls just short of previous estimations of around 8,835 or 56 per cent of the register, according to Wealth Data.

This figure had been based on all advisers who indicated on the FAR that they were members of the Financial Planning Association (FPA) and the Association of Financial Advisers (AFA), which merged to form the FAAA in April this year.

Since the forecast, quite a few of those advisers have ceased and a few may well still be in the process of joining FAAA, explained Wealth Data founder, Colin Williams.

“For example, we found another 95 advisers who are still showing as members of the FPA/AFA,” Williams noted.

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These advisers could still be finalising their membership, he observed. The founder reminded licensees to monitor their advisers to maintain up-to-date information as fines may apply. 

“It can be misleading to the public, which never fares well for anyone connected to financial advice,” he added.

The average cost to update multiple details for an adviser on the register is some $36 per adviser; however these member details were updated with no additional cost to licensees through FAAA’s negotiation with the regulator, Williams said. 

In questioning whether it may be the “best of times to be a financial adviser”, Wealth Data found that the number of adviser opportunities by population has grown.

There were 900 Australian people per adviser in 2019, which has now risen to 1,706.

Overall, the weekly data to 24 August saw a net change of negative one adviser, bringing the current number of advisers to 15,712. 

The net change for this calendar year sits at a loss of 87 advisers and an increase of 146 this financial year.

The number of advisers active with appointments or resignations this week was 68, alongside seven new entrants, two new licensees and one which ceased.

Some 25 licensee owners had net gains of 32 advisers. Seven licensees saw an increase of net two advisers each, including a new licensee which commenced this week.

Firms who were up by two included Findex and Bluewater Financial Advisors who both gained from Spark Financial. Additionally, AIA got one adviser each from Aware Super and Mercer.

Moreover, 18 licensee owners were up by one adviser each, including Shaw and Partners, Canaccord Group and Beryllium Advisers who had increased by nine advisers this year.

In terms of losses, 26 licensees had net decreases of 33 advisers. Insignia and AMP Group lost three advisers each after four left and both gained a new entrant.

Three owners were down by two advisers each. This notably included Fitzpatricks, who lost 16 advisers or down by 18 per cent this calendar year.

WT Financial Group hired one new entrant but lost three advisers.

Finally, 21 licensee owners decreased by one each, including Count Group who were down 18 advisers or 5.5 per cent, as well as FSSP (Aware Super) who lost seven this year or 4.9 per cent.