Licensee numbers tumble, but not for holistic advisers

According to Wealth Data, despite overall licensee and adviser numbers falling, much of this decline has come from business models that do not normally provide holistic advice.

Since the start of 2021, the total number of licensees dropped from 2,154 to 1,827 as at 28 April 2023, while adviser numbers dropped from 20,874 to 15,870.

Wealth Data founder Colin Williams said: “When we filter out licensees belonging to our accounting limited advice, super funds and ‘other’ models, i.e. business models not normally providing holistic advice, the numbers change dramatically.

“There is still a drop in advisers from 17,499 to 14,519. However, the number of licensees has jumped by 109 from 1,547 to 1,656.”

Mr Williams said that small licensees are seeing growth, with an increase of 134 for those in the one to four adviser band.

The percentage of advisers at licensees with fewer than 20 advisers sits at 35.8 per cent, up from 29.1 per cent in 2021.

For the week ending 28 April, licensee numbers fell by three, with four ceasing operation and one new licensee starting up.

However, eight new entrants on the Financial Advisers Register (FAR) offset those leaving, with net adviser numbers increasing by three.

Prosperitas Partners (Inner Wealth) added two advisers from Vinrac, while Diverger picked up three advisers and lost one, and a new licensee commenced with two former Infocus advisers.

An additional 21 licensee owners, including Spark, Ord Minnett, Bell Financial Group, and AAN Wealth, were all up one adviser.

Mercer had a net loss of four advisers, with all exiting the FAR. Two licensees that closed accounted for two exiting advisers each, while Financial Professionals Group (AFSL Investment Professionals) was also down by two.

An additional 17 licensee owners, including AMP Group, Centrepoint, Fiducian, Insignia, and Morgans, were all down one adviser.