Financial adviser average gross revenue at the eight ASX listed financial advice firms has jumped considerably in the first half of the 2024 financial year, according to the latest analysis by Wealth Data.
The firm’s Colin Williams says Wealth Data reviewed the financial statements of ASX listed firms that provide financial adviser services as a follow-up to a review it did in September 2023 that covered the past financial year (see: Advisers Average Gross Revenue Analysed).
The latest data is only for the first half of the 2023/24 year and the firm “…has annualised the amount by simply doubling the revenue.”
Williams says the gross revenue range varies from $600,000 per adviser for one company (the same as reported for the full 2022/23 year) “…down to $284,923, which is a significant jump on the full 2022/23 year of $236,550.”
The median “…has increased to $446,480 from $393,050. The raw average is at $493,936, an increase of over $30,000 on last year which was at $463,258.”
While the data is for the half year, not a full year as was the previous data, Williams says “…it does provide good guidance as to where the revenues are heading with a jump in the median and averages.”
He adds the chart is based on each ASX listed firm, and the results are a combination of all licensees owned by the firms.
“We have decided not to identify the individual firms, as revenue is not necessarily an important factor for all firms. For example, some firms charge a flat fee for their services. Culture-fit, longevity, strong financial planning and business skills are all part of the equation when considering financial advisers for their firms.”
He also notes that all firms would have advisers who are above and below the averages.
“Many of the firms may also have advisers who are authorised to help complement their (advisers) broader business, and therefore their revenues may be lower than advisers who only provide financial advice.”
Williams outlines several points in his notes on the data:
- Wealth Data used the gross revenue for advice businesses and checked with the firms to confirm the data
- To annualise the revenue, it simply doubled the gross revenue
- Established an average number of advisers on the ASIC FAR by adding the number of advisers at the start and end of the period and dividing by two. This number (in most cases) was discounted by 5% to allow for staff on the ASIC FAR who would not normally see clients directly. Where applicable, Wealth Data also removed advisers restricted to SMSF advice
- The annualised revenue per firm was divided by the average number of advisers to determine the average gross revenue per adviser
- When firms bought/sold licensees, Wealth Data completed a pro rata calculation for the number of advisers
- The median is the median gross revenue of the firms
- The raw average is the annualised total gross revenue of all firms divided by the total average number of advisers
The total number of advisers, averaged over this period, was 3,600. The companies reviewed were; AMP, Insignia, Diverger, Sequoia, Centrepoint, Fiducian, Count and WT Financial Group.
