Of the nearly 19,000 financial advisers on the ASIC FAR, 14,653 can offer their clients risk advice, according to Wealth Data’s latest analysis.
Writing in his weekly Financial Adviser Movement Colin Williams says the number of real financial advisers on ASIC’s FAR depends on how you define a ‘real financial adviser’.
He says the current unedited ASIC FAR shows a total of 18,966 ‘advisers’ but this is different to the figure Wealth Data uses currently of 18,760 advisers, as it removes timeshare and FX advisers.
Williams’ chart, which highlights the number of advisers and how many can offer certain types of advice/products as defined on the FAR, shows that of the total 18,966 advisers, 14,653 can offer advice for risk, with 13,821 able to offer clients risk and IDPS. It also shows:
- 13,768 in the risk, super IDPS category
- 12,241 in the risk, super, IDPS, securities category
- 7,115 in the risk, super, IDPS, securities and margin lending category
He says in his weekly report that when Wealth Data mixes the offers, the numbers reduce. “For example, only 7,115 advisers can offer risk, super, IDPs, securities (shares) and margin lending.”
Williams notes that while quite a few assumptions can be made of this data, “…there is little doubt that there are a number of ‘advisers’ on the FAR list that should probably not be classed as a financial adviser.”
He adds too that advice, like many professions, can become specialised “…and it would make sense for some practices to have a focussed team of specialists as opposed to the entire team being generalists.”
14,653 Advisers who can provide risk advice is a reasonable number and if we can convince all these Advisers that there is positive work going on behind the scenes, which from next year will make the provision of Life and Disability Insurance to their clients, more profitable and less onerous, then the future will be very good for the entire Industry and all Australians who need this important cover.
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