More licensees close as adviser numbers continue to drop
This was a significant week for the adviser numbers as another eight licensees decide to close, which translated into the loss of 15 adviser roles, according to the weekly analysis of the Financial Adviser Register (FAR) by HFS Consulting.
At the same time, the number of actual advisers for the entire industry dropped by 40 to 22,201.
HFS’ director, Colin Williams, explained that six of those closed licensees were associated with accounting firms which was in line with the broader trend which saw more accounting firms reducing the number of advisers on their books.
Williams said it would be interesting to watch how many of these small accounting based licensees would remain post FASEA (the Financial Adviser Standards and Ethic Authority) exam requirements as their numbers were reducing each week.
“It could lead to opportunities for established advisers to form new relationships with accountants who are calling time on their short financial advice career,” Williams said.
Also, according to HFS’ analysis, this week saw 39 licensee owners make net losses for a total of (-77) adviser roles.
This was followed by 47 licensees having reported net adviser losses for a total of 81 adviser roles, with IOOF-owned Bridges Financial Services and Garvan Financial Planning (MLC) losing 15 and seven roles, respectively.
In total, 46 adviser roles were appointed this week, only one being a ‘new’ provisional adviser, while 89 roles ‘resigned’ giving the net total of (-43).
Source: HFS Consulting
Year-to-date both IOOF and MLC Groups were down (-105) adviser roles each, and were followed by AMP Group which was down (-95).
AUTHOR
Oksana Patron
Recommended for you
With the Australian advice market being a target for US private equity firms, a US advice commentator has shared lessons from his overseas experience, and why PE may be less attractive than initially expected.
Financial advisers are reminded to ensure their CPD is up to date with the Financial Services and Credit Panel making its second determination in a week after an adviser failed to meet the requirements.
AWAG has entered a strategic joint venture relationship with Singapore-based financial services firm PhillipCapital, expanding its product and services distribution reach.
Investment manager Drummond Capital Partners has announced a series of appointments to expand its distribution reach with advisers nationwide.
