Market share movements of major licensees revealed

New data from Wealth Data has revealed that the two major licensee owners, Insignia and AMP Group, are still leading the pack with 1,061 and 929 advisers, respectively.

Insignia’s market share has, however, reduced from 8.78 per cent in January 2021 to 6.66 per cent this month, while AMP’s has dropped from 7.28 per cent to 5.83 per cent.

Centrepoint, the third largest licensee with 519 advisers, actually improved its market share from 2.41 per cent to 3.26 per cent despite a relatively small increase of 21 in advisers.

Overall, in the reviewed period, Insignia lost a net 755 advisers, while AMP contracted by 576.

In fourth place, WT Financial Group lost 278 to 464, while its market share dropped from 3.59 per cent to 2.91 per cent.

Wealth Data also released a modified financial planning model, which is essentially made up of licensees that offer mostly holistic advice.

Under this model, Insignia’s starting market share was at 14.09 per cent and has dropped to 10 per cent, while AMP dropped from 11.68 per cent to 8.76 per cent.

Commenting on the data, Wealth Data founder Colin Williams said: “The change in market share for the larger groups has been affected by the growth of new ‘micro’ AFSLs”.

“Since January 1, 2021, 250 new AFSLs have commenced in the financial planning model, all but one has less than 20 advisers. One hundred forty have closed,” he explained.

“It should be recognised that some of the groups still service advisers who may have switched to a small AFSL of their own. However, it clearly highlights how the overall market has become far more fragmented than it once was”.

Wealth Data also reported that in the week of 23 February, the number of advisers on the Financial Advisers Register (FAR) sunk by five to 15,863. The firm also reported a jump of five new licensees.