Record exam results boost adviser growth
Following a record 73 per cent pass rate in the August financial adviser exam, 19 new entrants have joined the advice industry, according to Wealth Data.
In the week to 28 September, the research house revealed a net change of +31 advisers, a stark contrast to the net change of -30 the week prior.
The strong adviser growth was largely driven by the highest pass mark of the adviser exam this year at 73 per cent, with 150 out of the 205 candidates sitting the exam passing.
Almost three-quarters of the candidates had been sitting the exam for the first time, with just 57 being repeat candidates.
The pass mark was an increase from just 52 per cent who passed a year earlier in August 2022 and a significant improvement on the lows of 32 per cent in March 2022.
“However, August 2022 was a very different time, with the majority of advisers sitting for at least a second time,” commented Colin Williams, Wealth Data founder.
Last week’s 10 new entrants combined with this week’s 19 bring the total number to 29 new entrants since the August exam results were released.
The current number of advisers has risen to 15,710. For the calendar year to date, there has been a net change of -88, alongside a net change of +149 for the financial year to date.
This week was also busy with 75 appointments or resignations, while four new licensees commenced and zero ceased.
Looking at adviser growth, 45 licensee owners had net gains of 55 advisers.
There were four new licensees that commenced, including one which gained four advisers who had previously been authorised at Infocus.
UniSuper increased by three advisers, all joining from different licensees. Castleguard Trust (Lifespan) was also up by three, with all being new entrants.
Three licensees rose by two advisers each, including Coral Coast Advice that gained both from Consultum alongside AIA that gained two from different licensees.
Some 37 licensee owners gained one adviser each, mainly due to the gains in new entrants.
In terms of losses, 18 licensees had net losses of 24 advisers.
Steinhardt Holdings (Infocus) lost four advisers, with all joining a new AFSL as previously mentioned.
Three licensees were down by two each, including Insignia Financial and Industry Super Holdings. The week prior, Insignia saw a significant loss of 24 advisers which brought its total YTD losses to more than 100.
Finally, 14 licensee owners decreased by one adviser each, such as Count, Capstone and AMP Group.
AUTHOR
Jasmine Siljic
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
