Downward trend for adviser numbers slows in 2024

Final numbers are in for the 2024 calendar year, showing overall adviser numbers recorded a total net loss of 145 advisers, which was slightly higher than preliminary estimates but “significantly better” than the 182 advisers lost during 2023 and the years prior. The final number of advisers at the end of 2024 was 15,477.

According to Wealth Data, the total numbers of advisers in the financial planning (holistic advice) space fell slightly from 10,412 to 10,383, a drop of 0.28 per cent or 29 advisers, while investment advice saw a 0.89 per cent loss (26 advisers) from 2,927 to 2,901.

The financial planning (holistic advice) business model saw the largest growth in terms of new licensees, gaining 90 new licensees during the year to make it the largest business model.

Some 13 new licensees opened in investment advice, 10 in accounting (financial planning) and five in others, bringing the total number of new licensees that commenced during the year to 118.

Zero new licensees commenced in superannuation fund-based advice, accounting (limited advice) or other limited firms.

While 97 licensees ceased overall, including 60 in financial planning (holistic advice) and 14 in investment advice, Wealth Data noted the majority of advisers affected by the closures are still practicing elsewhere.

Looking at organic adviser growth by licensee owners, Centrepoint Alliance gained a net 39 followed by Finchley & Kent at 37 and Picture Wealth at 33.

Entireti lost 92 but Wealth Data noted most of these occurred at AMP licensees prior to Entireti acquiring them at the end of the year.

Count declined by 75 advisers, with the majority departing from Merit Wealth, and WT Financial lost 40 advisers.

By the end of 2024, the top 10 largest licensees in order of adviser numbers were:

Source: Wealth Data

Regarding new entrants, 511 came onto the Financial Advisers Register during 2024, compared to 407 in 2023, and 484 of those are still practicing, which represents a retention rate of 94 per cent. The highest proportion of new entrants were hired by Entireti, followed by Count and WT Financial.