Holistic advice licensees buck growth trend
The overall number of licensees has fallen by 15 per cent since January 2021, according to Wealth Data, but those focused solely on holistic advice only have seen positive growth.
Since 1 January 2021 to 28 April 2023, the number of licensees had shrunk from 2,154 to 1,827.
This represented a 15 per cent drop over the period; however, when considering those that did not normally provide holistic, the numbers instead grew by 7 per cent.
“When we filter out licensees belonging to our accounting limited advice, super funds and ‘other’ models, i.e. business models not normally providing holistic advice, the numbers change dramatically,” noted Colin Williams, Wealth Data founder.
When excluding those categories, the number of licensees grew from 1,547 in January 2021 to 1,656.
This came at a time when there was a drop in adviser numbers from 17,499 to 14,519 over the two-year period.
Moreover, the percentage of advisers among licensees under 20 people increased from 29.1 per cent in 2021 to 35.8 per cent in 2023. Licensees with one to four advisers jumped the most, seeing an increase of 134 advisers from 1,070 to 1,204.
Meanwhile, Wealth Data reported more licensees had closed than opened in the week to 28 April.
Two licensee owners closed down, including AustralianSuper which lost two advisers. The fund offered financial advice outsourced by Industry Fund Services (IFS). One new licensee commenced with two advisers joining from Infocus.
Overall, the profession saw a net change of three advisers, representing a positive net change of 59 advisers this year to date.
Adviser movements from March had previously indicated a growing stabilisation trend in the number of financial advisers leaving and entering the industry.
Some 24 licensee owners saw net gains of 27 advisers, while 21 owners experienced the same amount in losses.
Prosperitas Partners (Inner Wealth) was one of the three licensee owners which had a net growth of two advisers as two moved away from Vinrac.
Diverger was additionally up by two advisers as it brought on three advisers and lost one.
Infocus lost two advisers to a new licensee which commenced this week.
More than 20 licensee owners saw an increase of one adviser, which included Spark partnership, Ord Minnett, Bell Financial Group and AAN Wealth.
In terms of losses, Mercer’s adviser numbers decreased by four, with none appointed elsewhere yet.
Financial Professionals Group (AFSL Investment Professionals) decreased by two, while 17 licensee owners were down by one each. These were AMP Group, Centrepoint, Fiducian, Insignia and Morgans.
AUTHOR
Jasmine Siljic
Recommended for you
High-net-worth advisers seeking to grow their businesses are likely to find alternatives to be a key part of the puzzle amid investor demand, according to Praemium’s head of private wealth.
The financial advice profession has lifted back above the 15,500 mark this week thanks to a double-digit net rise in adviser numbers, according to Wealth Data.
A closer watch on licensees that fall short on cyber security protections is among a dozen new enforcement priorities announced by the corporate regulator for 2025.
Research house Morningstar has welcomed a new director for manager research to cover Australian and New Zealand fund managers.
