Adviser numbers helped by ‘regular stream’ of new entrants

Some 355 provisional advisers and new entrants joined the industry so far in 2022 — equivalent to the third largest licensee in the country.

The latest figures from Wealth Data showed that while this number may be considered low by industry observers, it is a good jump of new entrants to what the industry experienced last year.

As to where the new entrants landed, AMP group had 23 of the 355, which represented 2.39 per cent of all advisers, followed by Insignia at 22, and Fortnum at 10.

The stream of new entrants was particularly strong in the third quarter when 129 provisional advisers were appointed, compared to 49 in the second quarter and only 26 in the first quarter.

However, when analysing the overall figure in the context of the adviser exodus, the number of new advisers becomes a lot more sobering. Namely, since the start of this financial year, the industry has already lost 318 advisers, while during this calendar year, over 1,200 individuals have departed the industry.

But Wealth Data director, Colin Williams, believes the number of advisers has “well and truly steadied over recent weeks”.

“The net numbers have been helped by a regular stream of new entrants,” he said.

Last month, speaking to ifa about his recent key observations, Mr Williams said that while “it’s not particularly concentrated”, more firms are definitely hiring provisional advisers.

“It is vital for this to keep going as the profession will always lose advisers to retirement and others who may change careers,” Mr Williams said.

He explained that while advisers are often discouraged from hiring provisional advisers due to mainly commercial reasons, the practice is becoming much more commonplace.

“While the program for PAs may look complex and costly, as more firms take them on, everyone will learn and make the process that much easier,” he noted.

As for whether he expects the positive trend of provisional adviser entrants to persist, Mr Williams had an optimistic view.

“I think so, the trend has been pretty consistent of late which is encouraging,” he said.

“I also believe that most practices are profitable and professional, and can see clear benefits in taking on staff that they can train from the ground up.”