More than 150 experienced advisers were removed from the ASIC FAR, latest data shows, with most of the losses due to advisers not passing the required financial adviser exam.
Wealth Data’s analysis shows a net change of 149 advisers with the current number of advisers now sitting at 16,203.
The firm’s Colin Williams says in his weekly commentary that losses were “very high” and Wealth Data believes the vast majority are due to the non-passing of the financial adviser exam.
“We suspect that we will see more losses in the coming weeks for the same reason,” he says, noting that licensees have 30 days to report adviser movement and advisers who needed to pass the exam had to do so by September 30.
Changes in the Licensee Market Since 2019
Looking at how the licensee market has changed since 2019, Williams has produced a table filtered by the licensees that fit Wealth Data’s Financial Planning model “… licensees that provide mostly holistic advice and make up the largest market share of the adviser market.”
He says the table highlights “…that licensees with 100 or more advisers once had a total of 10,853 advisers (3,337 + 7,516) which represented 63.1% of the adviser market.”
Today, those numbers have shrunk to 4,858 advisers or 50% of the adviser market.
“Meanwhile, the small, self-licensed sector of licensees with between one and four advisers has grown from being 7.6% of the market to 16.2%,” he notes.
Another way to spin the numbers:
The total adviser population has dropped about 1% in the space of a week (or whenever this news was last published).
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