Adviser numbers across Australia have fallen to 15,908, down more than 15% on a year ago.
Wealth Data’s Colin Williams says the latest weekly loss of 295 is large “…and when combined with last week’s loss of 149 the net loss over two weeks is now at 444″.
He says that after deducting the gains from provisional advisers, the net loss of experienced advisers exceeds more than 450 over the fortnight.
The losses have been driven by the need to pass the Financial Adviser Exam for those advisers who were given an extension to September 30 this year.
Williams says his firm believes there are “…some more losses, but not as heavy, to come over the next couple of weeks before flattening out”.
Licensees have up to 30 days to report losses and Williams says with the current run of public and school holidays, reporting may be lagging a little.
Net Change
In looking at the net change of advisers by business model (peer groups) over the last 12 months, Williams says total adviser numbers are down by 15.54% with the Accounting – Limited Advice model (which offer mostly SMSF services) hardest hit, being down 57%.
He says the Investment Advice model, made up of licensees that focus primarily on portfolio advice, has had a net loss of 13%, while the Financial Planning model, comprising licensees that offer holistic advice, is down 11%.
Super Funds have held up the best over this period with a net loss of almost 9%.
Williams adds that the only growth segment are new licensees in the Financial Planning model, with 118 new licensees commencing and 83 closed.
“The vast majority of the new licensees are small practices, usually between one and four advisers,” he says. “Most of the advisers exited large licensees and are well qualified, experienced advisers.”