Financial adviser numbers bear double-digit drop
The advice profession lost 15 advisers over the past week, partly due to a lower number of new entrants and advisers transitioning between licensees.
According to Wealth Data’s weekly analysis, the double-digit loss in the week ending 5 September saw adviser numbers fall to 15,497. Meanwhile, the previous week saw a net growth of five advisers.
Just six new entrants joined the profession over the week. In comparison, every week since FY25 commenced has enjoyed double-digit new adviser numbers.
Over 80 advisers were also active with appointments and resignations, noted Wealth Data founder Colin Williams.
“The financial adviser market had a net loss of 15 advisers this week, triggered in part by a lower number of new entrants and advisers in the process of transitioning between licensees,” he explained.
In the results for the August sitting of the financial adviser exam, which were announced last week, the pass mark was 62 per cent, representing 143 candidates. This is the lowest percentage of candidates who have passed since November 2022, when only 57 per cent passed.
Williams continued: “With the exam results released last week, we can expect another pick up in new entrants over the coming weeks.”
The next exam will be held on 7 November, and indicative dates for exams in 2025 are on 6 March, 5 June, 7 August, and 6 November.
Looking at the adviser declines over the past week, 30 licensee owners had net losses of 40 advisers in total.
WT Financial Group bid farewell to five advisers after it lost six and appointed one. Two advisers moved across to Centrepoint-owned Alliance Wealth, while the remaining advisers are yet to be appointed elsewhere.
Allan Hall Business Advisory lost three advisers, meaning the firm is now down to zero advisers.
Four licensees were down by two advisers: Infocus, NTAA, Tupicoffs, and Viridian Advisory. Another 24 licensee owners lost one adviser each, including Fortnum and Bombora.
In terms of adviser growth, 24 licensees had net gains of 27 advisers. Three AFSLs welcomed two advisers during the week: Vincents Advisory, Rhombus Advisory, and River X.
Meanwhile, a tail of 21 licensee owners added one adviser each to its ranks, such as Findex, Centrepoint, and ASVW Holdings.
AUTHOR
Jasmine Siljic
Recommended for you
David Sipina has been sentenced to three years under an intensive correction order for his role in the unlicensed Courtenay House financial services.
As AFSLs endeavour to meet their breach reporting obligations, a legal expert has emphasised why robust documentation will prove fruitful, particularly in the face of potential regulatory investigations.
Betashares has named the top Australian suburbs with the highest spare cash flow, shining a light on where financial advisers could eye out potential clients.
A relevant provider has received a written direction from the Financial Services and Credit Panel after a superannuation rollover resulted in tax bill of over $200,000 for a client.
