Adviser numbers tumbled by more than 300 last week, according to Wealth Data’s latest weekly analysis, but there are some bright spots.
In his weekly report, Wealth Data’s Colin Williams, points to a net loss of 319 advisers as reporting by licensees catches up with the FASEA Exam requirements. According to Wealth Data, the total number of advisers is now sitting at 17,282.
Williams says the vast majority of this week’s losses were in the Accounting – Limited Advice peer group, mostly accountants offering limited SMSF Advice.
He says the losses for the week were dominated by the SMSF Advisers Network which was down 255 “…and down a massive 380 for the financial year. This is not surprising based on our FASEA Exam analysis … which clearly showed that the SMSF Advisers Network were struggling with FASEA Exam requirements.”
Williams adds that despite the large drop in total adviser numbers, which was expected, “…there are some positive stories beginning to emerge, such as the continued upward trend of provisional advisers.”
He notes too that Wealth Data is also seeing “…a very large portion of the CBA advisers that were forced to leave last year being recruited elsewhere.”
Of the 178 who were ‘let go’ after November last year 102 have gained new roles with 51 at AIA Financial Wellbeing and 51 at other licensees. “This indicates that licensees and practices are hiring advisers.”
Williams says the 17,282 is close to Wealth Data’s forecast of 17,227 for Jan 2022, post the FASEA November exam results being published. “The data suggests we have a few more advisers to fall because of FASEA exam requirements.”
Key data points for the week:
- Net Change of advisers – down 319
- Number of advisers now at 17,282
- 27 Licensee Owners had net gains for 52 advisers
- 57 Licensee Owners had net losses for 374 advisers
- 2 new licensees commenced and 12 closed
- 5 Provisional Advisers commenced
The number of new Advisers in the Life Insurance space in the last few years, if not NIL, would be close to it, while thousands of experienced Advisers are gone.
It is tragic and was totally avoidable.
Indeed it is and was Jeremy. Those of us who’ve been around decades++ can attest to seeing the absolutely huge attrition rate of new advisers. Even back in the days of cold calling – which wasn’t easy but gave a good start to the truly determined – the fail rate within the first 6-12 months was easily over 75%. THAT was WITH willing mentors around and available.
Today, with little true mentorship around (FARCE-IA got rid of THAT for them) the fail rate is proving to be even higher. This is understandable as most coming through think that academic proficiency is going to win the day for them. In reality, certainly in the RISK business, that proficiency takes a definite back seat to relationship building – selling YOURSELF before the client will buy anything.
The new recruits mostly are unprepared for the fact that is IS a sales business, whether pure RISK or full FP/investment advice. This is because you are always selling yourself . . . additionally, in risk, you are selling the need for the advice and product. The dual tragedy is that clients will suffer in this ‘transition’ AND the investment groups and life companies will realize it all too late to save themselves from sales falling off a cliff, which began in earnest a little while back. After they realize the swirling around the sinkhole is not going to subside, they won’t be able to fix it within a time frame of at least 5 years after ground zero – much, much suffering for them to come. As you say, this tragic farce was so, so easy to avoid with simple common sense.
Seriously?
“Williams adds that despite the large drop in total adviser numbers, which was expected, “…there are some positive stories beginning to emerge, such as the continued upward trend of provisional advisers.”
How many was that continued upward trend – 5! FIVE!!!
Thousands have left this industry the last 2 years as a result of a totally conflicted organisation / Government agenda and this guy is optimistic about FIVE newbies.
WOW – now there’s your glass half full attitude!
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