Average adviser revenue tops $450k in 22–23

The analysis from Wealth Data looked at the gross revenue generated per adviser at eight ASX-listed companies for the 2022–23 financial year: AMP, Insignia, Diverger, Sequoia, Centrepoint, Fiducian, Count, and WT Financial Group.

According to Wealth Data, the range of gross revenue varies from $600,000 per adviser at the top end to $236,550, resulting in a median revenue of $393,050.

The total number of advisers at the companies that were reviewed, averaged over this period, was 3,856. The average revenue, calculated as adding up all revenue and dividing by all advisers, came in at $463,258.

“We have reviewed the ASX financial statements and presentations from eight companies that provide financial adviser services,” said Wealth Data founder Colin Williams.

“Our goal was to establish a benchmark for financial adviser gross revenue generated for the financial year 2022–23.”

Mr Williams noted within his analysis that not all companies provide actual revenue amounts for advisers.

“Some do, others have the data consolidated with other revenue lines. When the data has not been explicit, we have used our experience to delve into the revenues generated and expenses paid back to advisers,” he said.

“We have cross-referenced each company’s data for the number of advisers with our data. For the purpose of this exercise, we have used the ‘average’ number of advisers, this being a simple calculation of adding the number of the advisers at the start and end of the financial year and dividing by two.”

Adviser movement this week

Looking at Wealth Data figures for the week ended 7 September, there was a net gain of one adviser, despite 115 advisers being involved in resignations or appointments.

The growth for many licensees this week was dominated by losses from NextGen Financial Group, owned by the Financial Link Group.

Namely, NextGen lost 13 advisers this week and 10 the week before.

Thanks to this, LFG Financial Services are up by six advisers this week, while Australian Mortgage and Financial Advisers (AMFA) was also up by five, all 11 having switched from NextGen.

Meanwhile, Troy Mahoney (Australia National Investment Group) was also up by five, with four of the advisers hailing from KDM Financial, while the other switched from Picture Wealth Group (Insight Investment Services).

Sequoia Group gained three, all moving from different licensees to join Interprac.

Nine AFSLs had gains of two, including Templestone Financial, NTAA and Castleguard Trust (Lifespan). Two of the four new licensees also joined with two advisers.

A long tail of 26 licensees were up by one each, including Count Group having gained one new adviser and switched four advisers from its Affinia licensee to Count Financial. Diverger was also up by one, while the remaining two new licensees commenced with one adviser each.

On the other side of the coin, 37 licensees lost 65 advisers.

With NextGen being down by 13 – with all but two of the advisers having been appointed elsewhere – NextGen now only boasts 20 advisers.

AMP Group was also down by five, with most losses moving to PSK, while Mercer lost five advisers, with none of them showing as being appointed elsewhere, while KDM Financial decreased by four.

Picture Wealth was down by three, with two advisers joining a small licensee and the other moving to Interprac.

Three licensee owners fell by two each, including AAN Wealth, while 29 licensee owners lost an adviser each including Centrepoint, Guideway, Macquarie Group, and Viridian.