M&A activity sees higher number of ceasing AFSLs
The number of ceased advice licensees this financial year is nearly four times higher than the previous period.
Since the 2024–25 financial year commenced, 11 Australian financial services licensees (AFSLs) have discontinued their operations. In comparison, this figure was at just three for the 2023–24 financial year to date – nearly four times the amount.
According to Colin Williams, founder of Wealth Data, the rise in ceased licensees is likely driven by M&A activity among new AFSLs.
“This increase may be expected as many newer licensees are merging or being acquired by similar companies. Regardless, the rise in the number ceasing operations will be important to monitor throughout the year,” he noted.
Meanwhile, the initial rush of new licensees opening their doors when FY25 began has ended, Williams observed, as the week ending 15 August saw no new licensees commence.
“Comparing this data to the same period last year, the number of new licensees is similar: 22 this year compared to 24 last year.”
Money Management recently delved into the cost-effectiveness of running your own licensee and whether the expenses are worth the benefits it provides.
Esencia Wealth chief executive Matthew Fenning described: “For us, it was a no brainer. But it’s something that you’ve got to invest a lot of time and resources into. It’s not to be underestimated. It’s not going to always be a ‘grass is greener’ type situation for everyone. It is a lot of work and it requires a lot of senior people in the business committing time to it.”
The past week ending 15 August also saw financial adviser numbers surpass the 15,500 mark again. A net growth of 13 advisers in the week saw the profession rise to 15,510, made up by 12 new entrants.
The number of new entrants who have joined the advice profession in FY25 recently exceeded 100, with the beginning of the financial year period often seeing a strong number of advisers join the Financial Advisers Register (FAR).
Some 25 licensee owners had net gains of 50 advisers in total, Wealth Data recorded. This was led by Lifespan Financial Planning, which welcomed five advisers to its ranks. Two advisers joined from Morgans, another two from Madison (Infocus) and one from Synchron (WT Financial Group).
Four AFSLs grew by three advisers each, which were: WT Financial Group, Morgans, Fitzpatricks and Finchley and Kent.
Another six licensees were up by two advisers each, including Sequoia Group and Shaw and Partners, while a tail of 14 licensee owners increased by one adviser each.
In terms of adviser losses, 25 AFSLs had net declines of 28 advisers all up. Bell Group, Centrepoint Alliance and Infocus all lost two advisers each, while a long tail of 22 licensees were down by one adviser each.
AUTHOR
Jasmine Siljic
Recommended for you
The Reserve Bank of Australia has delivered its first rate decision since the introduction of a new board structure last month.
ASIC was active in the first quarter of 2025 with several financial adviser bannings and court action, while the FSCP also handed down outcomes to advisers.
With a joint venture announced between WT Financial and Merchant Wealth Partners, the firm may have a US background, but partner David Haintz has a long history with Australian financial advice.
The big four bank is set to see $40 million per annum in cost savings as it continues to migrate customers from its Asgard wealth platform to BT Panorama by FY26.
