Growth in new entrants slows as overall adviser numbers dip

Rhombus Advisory and WT Financial Group, two of the five largest licensees in Australia, saw declines in adviser numbers this week, with Wealth Data analysis showing there was a net loss of 11 advisers in the week ending 24 October 2024 and the total number of advisers now standing at 15,512.

This followed a net decline of one adviser last week, but two weeks of growth prior to that.

“The loss was driven by two licensees ceasing and a very low number of new appointments. Potentially, some of the losses may well be in the process of switching from one licensee to another,” said Colin Williams, founder and director of Wealth Data.

Notably, just three new entrants joined the profession over the week. This is the lowest number of new entrants for this financial year-to-date, as the vast majority of the past weeks have enjoyed a double-digit number of new advisers.

Two licensees ceased and two new licensees commenced, while 52 advisers were active with appointments and resignations.

Looking at the adviser losses, 19 licensee owners experienced net declines of 31 advisers in total.

Four licensees lost three advisers each. This included Rhombus, with all three yet to be reappointed elsewhere, and WT Financial, which saw one adviser move to Charter (AMP Group), one move to Capstone and the remaining adviser yet to be reappointed.

Next Generation Advice (NGAA) also lost three advisers and was one of the licensees that has now ceased operations. On 18 October, the Australian Securities and Investments Commission cancelled the firm’s licence after the Queensland Supreme Court ordered the company be wound up on 23 August 2024.

Another four AFS licensees were down by two advisers each, including PSK Group, and 11 licensees lost one adviser each, such as Lifespan.

In terms of adviser growth in the week, 20 licensee owners had net gains of 20 advisers. Interestingly, no licensee owners gained more than one adviser.

All 20 licensees reported a rise of one adviser each. This included Fortnum, Centrepoint Alliance and AMP, which welcomed two advisers but lost one.

Last week, Wealth Data revealed there was a net rise of 159 advisers in the September quarter, an improvement from 108 in Q3 last year. This quarter’s growth was underpinned by the 201 new entrants who joined, compared to 131 in the same period last year.