A comprehensive analysis compiled by Adviser Ratings has confirmed the number of authorised representatives in Australia is shrinking.
The financial advice data and rating agency has utilised data from ASIC’s Financial Advisers Register to report some key trends taking place in the advice sector, giving a statistical confirmation to other anecdotal signs of reduced adviser numbers.
Among a raft of its key findings, Adviser Ratings reports:
- Total adviser numbers reduced by 6.4% in the second quarter of 2019
- The number of ‘ceased’ advisers increased by 40% during the second quarter, rising to more than 1,750 for the quarter
Focussing on advisers departing the industry in 2019, the agency gave some context to this trend by balancing 2019 departures with a significant spike in advisers either returning to or entering the industry for the first time in the lead up to 31 December 2018. Its report includes this table:
…2,825 advisers ceased practising in the first half of 2019, representing a decline of nearly 11 percent
The firm’s commentary around this chart included the point that the first six months of 2019 witnessed a large decrease in total adviser numbers, where 2,825 advisers ceased practising in the first half of 2019, representing a decline of nearly 11 percent from the peak at the beginning of this year.
The agency expects this trend to continue: “We anticipate a higher than average number of ceased advisers over the next few years as more and more advisers “bite the bullet” and call time on their advising careers leading up to 2024, which is when all licensed advisers must have achieved the bachelor’s degree (or equivalent) educational requirement.”
Riskinfo will report other findings from this research in the coming weeks.