Strong growth in the self-licensed advice model, or micro AFSLs, appears to be shaking up traditional financial planning models, according to new analysis.
Wealth Data’s Colin Williams says in his latest Financial Adviser Insights that while the number of advisers in the business models have dropped by 8,766 or 36.93% since the start of 2019, the number of licensees has increased by 253 or 17.51%.
He says all the licensee growth has been driven by advisers starting their own micro AFSLs.
“For example, back in 2019 there were 568 licensees with up to two advisers … [and] that number is now at 869.”
Williams says that while at first “…those figures look bleak for the major licensees, they still dominate the number of advisers.”
He states that currently:
- 41.2% of all advisers are in 30 licensees that are greater than 100 advisers in size
- A further 24% sit in licensees of between 20 and 99 advisers
- The number of advisers in Micro AFSLs of less than 10 advisers is currently sitting at 27.1%
Williams notes that it’s difficult to know exactly ‘where’ financial planning models are heading, “…let alone if we have reached a destination.”
