Adviser landscape finds stability in 2023 as new entrants inject fresh energy

According to Wealth Data figures, the number of advisers operating in Australia dropped by 177 in 2023 to end the year at 15,622.

While this loss suggests the continued exodus of advisers, the figure is substantially less than the loss of 1,374 advisers experienced in 2022; 3,456 in 2021; 2,863 in 2020; and the staggering loss of 4,431 advisers in 2019.

The year “2023 can best be described as ‘stable’ and an opportunity for many to breathe again, after a very difficult few years post-2018,” said Colin Williams, Wealth Data founder.

In wrapping up 2023, Wealth Data revealed that 113 new licensees commenced throughout the year, with all but two of the new licensees boasting less than 10 advisers each. Over the year, licensees also exited with 63 reported to have ceased operating entirely.

The data also revealed that the category of accounting limited advice, which is restricted to SMSFs, had the greatest percentage loss of advisers in 2023 at 8.63 per cent, followed by super funds which lost 5.17 per cent of their cohort.

The largest business model, financial planning (providing holistic advice) was stable at 10,412 advisers, compared to 10,521 a year earlier, but it did gain the most licensees with a net 55, as 95 commenced and 39 closed.

Investment advisers numbered 2,915 at the end of the year, down by 13, while accounting-financial planning gained 56 individuals to reach 898.

Looking at the individual licensees, Wealth Data reported that AMP finished the year as the largest with 869 advisers (down 52), leapfrogging Insignia which lost 287 advisers and dropped to 782 as a result of both organic losses and the sale of Millennium 3 to WT Financial Group.

Fortnum experienced the most significant positive shift in advisers, with an impressive increase of 157, propelling it up by eight places to claim the sixth position from its previous 14th. Following closely, WT Financial observed the second-largest surge in advisers, with an increase of 92, accompanied by a positive rank change of one, securing its position in third place.

New advisers

Wealth Data also revealed that as many as 381 new entrants commenced in the industry in 2023 and remained as at 31 December. This, it noted, represents 2.43 per cent of all current advisers.

The financial planning business model appointed 265 or 2.55 per cent of current advisers, while super funds only appointed 11.

Earlier this week, Wealth Data reported that over the three weeks from 21 December 2023 to 11 January 2024, there was a net loss of 24 advisers.

“Typically, the first couple of weeks of January can be slow for reporting. As we progress through January, we will get a more complete picture to the final results of 2023,” Mr Williams said at the time.