One Opens, One Closes – Micro AFSLs in 2024


Meanwhile, the number of micro AFSLs ceasing so far in 2024 is keeping pace with the number of new entrants, according to Wealth Data.

The firm’s Colin Williams earlier analysis looked at the number of closed micro AFSLs in the financial year to date and he has now focussed on the current calendar year to date.

Colin Williams.

His earlier analysis found that since the start of the current financial year for every two new micro AFSL, one had closed (see: Advisers in Micro AFSLs).

But, he writes, in his latest Financial Adviser Insights publication, the data for the current calendar year “…highlights that it is getting closer to one-to-one. i.e. for every one commencing, one closes.”

He says that currently, 35 new licensees have commenced and 32 have ceased for this calendar year.

“This week we saw another three cease. For the same calendar year to date period in 2023, it was 30 commenced and 12 closed.”

Williams says that over recent weeks, the number of licensees ceasing has been greater than the number commencing.

“For example, since Feb 1, 2024 to [18 April 2024] 25 ceased but only 19 commenced.”

He adds that the financial year to date data “…benefited from a surge of new licensees that started in July 2023, with 22 commencing and only three closing. The month of July in 2022 produced similar results of 20 commencing and four closing,” he says.