The number of advisers who have ceased during 2023 currently sits at 365 – more than double the 146 new entrants, according to Wealth Data’s latest Financial Adviser Insights.
The research firm’s Colin Williams says some 240 advisers have re-joined the ASIC FAR after being ceased before the start of the new year, noting that the number of advisers returning tends to ebb and flow, especially around key dates such as the end and start of the calendar and financial years.
He adds that it’s a good time to do this exercise “…as all of the advisers that have ceased would have passed the Financial Exam. In addition, advisers who may have been considering retirement due to the need to gain an approved exam, would have known that an experienced pathway will be expected during 2023.”
He says that:
- 136 advisers that have ceased, had commenced as an adviser before 2010
- Another 133 sit between 2015 and 2018, which was pre the FASEA exam
- A rush of advisers joined the FAR late in 2018. Of the 133 in this grouping, 72 initially commenced in 2018
- The number of advisers who commenced between Jan 2010 and Dec 2014 is quite low at 61
- Post FASEA (2019), the number is low at 35. However, the total number of new entrants post 2019 has been also been low. Twelve of the 35 ceased as provisional advisers.
Williams says the industry may see some of these advisers come back “…the data is a simple ‘point in time picture’. However, we can also expect more resignations.”
He adds that the 365 advisers that have ceased represents 2.3% of the advisers at the start of the year, noting the data covers five months.
“If we project this out for 12 months, it would be 876 advisers or 5.5% of the advisers who were on the FAR at the start of 2023. The numbers post the end, and start, of the financial year will be interesting to watch,” Williams writes.
He adds that 43% of those ceased belonged to licensees that had 100 or more advisers.
“This is proportionate to the current number of advisers at such licensees which is at 42%. And 5.75% of those ceased belonged to licensees that are now at zero [advisers].”
Total adviser numbers now sit at 15,817.
Colin, it would be a very important bit of data, if you could ask the 146 new entrants, how many completed their studies with the intent to become either;
1) A specialist Wealth Protection Adviser
2) A specialist Investment Adviser
3) A holistic Financial Planner
4) Other
The reason being, Life Insurance / Wealth Protection Advisers have left the Industry in droves and unless there is a dramatic increase in Advisers who will write Insurance, then the Life Insurance sector will continue to decline and premiums continue to go up.
The Financial Planning Industry and the Government need to recognise that risk advice is a completely different Business model to Investment advice and needs a different approach to recruitment and Education, or we will continue to see declines and virtually NIL new specialist risk advisers.
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