New advice entrants surpass 100 in FYTD
Since the 2024–25 financial year began, more than 100 new entrants have joined the financial advice profession.
Wealth Data analysis of the Financial Advisers Register (FAR) has revealed that 112 new entrants have commenced in the advice field over the past six weeks since FY25 began.
This week ending 8 August saw 18 new advisers join, while 17 entered the week prior. The beginning of the financial year period often sees a strong number of advisers join the FAR, Wealth Data founder Colin Williams previously noted.
The positive news comes after recent research from Deloitte and Iress which found that 21 per cent of the 250 surveyed advisers said they were likely to switch careers or retire in the next 12 months.
Concerningly, three-quarters of those looking to depart were advisers aged under 40. Out of all under-40s surveyed, some 26 per cent said they intended to switch careers or retire in the next 12 months.
However, Anne Palmer, general manager of education and professionalism at the Financial Advice Association Australia (FAAA), provided some reassurance on this statistic.
“There is a general trend of younger aged workers being more likely to change careers, which isn’t limited to financial advice,” she previously told Money Management.
Key ways to recruiting and retaining new advisers in the industry include providing clear career pathways and promoting the positive impact that advisers have on clients, she added.
Weekly numbers
Over the past week, there was a net growth of five advisers. The new financial year-to-date has seen a net gain of over 150 advisers, however numbers look more dire for the calendar year which stands at a loss of 123 advisers.
In terms of adviser gains, 30 licensee owners had net gains of 45 advisers in total. Five AFSLs were up by three advisers each, including Count, Rhombus Advisory and Finchley & Kent.
Five licensee owners grew by two advisers each, such as Perpetual and Picture Wealth, while a tail of 20 licensees welcomed one adviser each.
Examining adviser losses over the week, 27 AFSLs had net losses for 40 advisers in total. FSSSP (Aware Super) lost five, Morgans bid farewell to three, and Szezjay Investments fell to zero after all three remaining advisers moved to Count’s licence.
Five licensees declined by two advisers each, including AMP Group, and 19 licensee owners lost one adviser each.
AMP Advice shake-up
Yesterday (8 August) was a significant day for the advice profession, with AMP announcing it will sell 70 per cent of its licensee and self-licensed offering Jigsaw for $10.2 million to Entireti, Fortnum Private Wealth’s parent company. Secondly, it sold its minority stake in 16 advice practices to AZ NGA for $82.2 million.
The acquisitions are set to bring more than 1,300 advisers together, according to AMP’s announcement.
“The deal is hot on the heels of the ‘self-employed’ licensees leaving Insignia under the new business of Rhombus. It will be interesting to follow the progress of both groups,” said Williams.
Rhombus, which now has 495 advisers, recently separated from Insignia Financial and consequently caused a shake-up in the top licensee ranking.
With AMP’s exit from advice not set to reach completion until the end of the year, the licensee still has 826 advisers. Meanwhile, Fortnum currently has 362 advisers.
AUTHOR
Jasmine Siljic
Recommended for you
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
WIth only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.
As the government announces a public inquiry into the collapse of Dixon Advisory, risk adviser Richard Silberman has detailed the three areas that typically lead to an AFSL's collapse.
