Advice industry remains stable: Report

According to Adviser Ratings’ 2024 Q2 Database Report, the number of advisers dropped in July last quarter by 126, down to 15,530 from 15,476 in April, with the majority of losses occurring in the last month, which is likely due to the end of the financial year.

The number of advice practices also decreased over the period with 6,056 currently in operation, down from 6,105, while the total licensees has remained the same at 1,841.

The gender makeup of the advice profession has remained similar to the previous quarter, with 22 per cent female, slightly down from 22.2 per cent in the previous quarter, and 78 per cent male, showing little change over the past five years despite efforts to encourage more women into the profession.

While many in the advice profession search for ways to improve process efficiency and increase their client capacity, almost two in three advisers are currently only managing between 25 to 100 clients.

The average amount of experience for an adviser has increased to 16 years, due in part to the low number of new entrants into the profession this quarter, according to Adviser Ratings.

Four in five advisers now hold a bachelor’s degree or higher, with the largest portion holding a bachelor’s honours degree or graduate certificate (38.5 per cent), followed by bachelor’s degree (26.5 per cent) and master’s degree (15.5 per cent).

“This has changed a lot after the royal commission and the change in requirements needed for advisers to be able to provide advice,” Adviser Ratings said.

Looking at advice practices, almost 95 per cent now have five advisers or less, furthermore, single adviser practices are remaining prevalent with almost two-thirds (approximately 60 per cent) only having one adviser.

Additionally, the report found that 90 per cent of licensees are privately owned, only offering financial advice services and licensing two-thirds of the advice profession.