Adviser losses hit 599 for FY2022–23

According to Wealth Data figures, FY22–23 began with 16,183 advisers on the Financial Advisers Register (FAR) and closed out at 15,584. This represents a drop of 3.7 per cent, which is considerably better than the previous financial year, in which 2,763 (14.83 per cent) left the profession.

Last week’s numbers found that there was a net loss of 452 advisers from 1 July 2022 to 28 June this year. With the final number hitting 599 advisers, there was a net loss of 147 advisers in just the final two days of the financial year.

“The end and start of each financial year does create a significant amount of adviser movement,” said Wealth Data founder Colin Williams last week.

“Excluding the losses at key cut-off times for FSAEA Exams, resignations are at their highest in June with the last day being the most critical, and appointments are at their greatest in July. Much of the movement includes advisers switching licensees.”

The 2022–23 financial year also saw 125 new licensees commence and 88 close. Among financial planning business models, this number was 102 new licensees and 51 closed.

Wealth Data said the licensee with the strongest growth was a new entrant, with MBS Advice adding 18 advisers during the financial year. PSK, with a net growth of 16 advisers, was next, followed by Fortnum and ASV Holdings, both up 14 advisers.

At the other end of the spectrum, AMP Group and Insignia both saw net losses of 136 advisers, followed by WT Financial Group, which was down 97.

There were 373 new entrants to the industry during the last financial year, while 1,429 left the profession. There were also 457 advisers that made a return to the advice industry.

Wealth Data did, however, caution that as licensees have 30 days to report their data, these figures are only preliminary.

The first three business days of the 2023–24 financial year went some way to clawing back the losses from the end of June.

“Only three days into it, the most notable change is 11 new licensees and a positive start of 115 Advisers. Insignia making a strong start of plus 20 despite a week of losses,” Mr Williams said.

A total of 275 advisers were included in the data as either being appointed, resigned or switched for the week to 6 July, which is about 200 more than most weeks.

In an analysis piece published by Adviser Ratings late last year, the firm estimated that with the recent exodus of advisers, as many as 100,000 consumers have either stopped seeing an adviser or were orphaned.

Adviser Ratings said while adviser numbers dropped below 16,000 for the first time in 2022, there is cause for optimism with signs the annual exit rate has slowed.

“We still predict the workforce’s numbers will fall further as consumers continue to grapple with the impact of having 12,000 fewer advisers than there were in 2019,” Adviser Ratings noted.