Fewer Annual Adviser Losses


The latest financial adviser loss numbers for both the financial year to date and for the last 12 months, are a “great improvement” on the corresponding periods last year, according to Wealth Data.

In his latest Financial Adviser Insights Wealth Data’s Colin Williams says June is a volatile month for adviser movement.

Colin Williams.

“To put this into perspective, in the financial year to date, the numbers are showing a positive 50, which is great. However, if we look at the last 12 months, i.e. including most of June last year, the number is a negative 192.”

However he says this is a “great improvement” over the previous corresponding periods.

In the previous financial YTD, at this same time of year, adviser numbers were down by 389 and in the previous full 12 months they had dropped by 623.

Williams says many advisers opt out in the last few days of the financial year and others decide to switch licensees, often ceasing at one licensee in June and joining the new licensee in July.

Courtesy of Wealth Data
Courtesy of Wealth Data

For Wealth Data’s business models that provide broader advice*, the financial YTD is at plus 117 and for the past 12 months is at minus 111.

For models that provide restricted / limited advice, the financial year to date is at minus 61 and for the past 12 months is at minus 75.

“The current number of advisers in licensees that provide restricted / limited advice is currently at 689. Despite the small number, they have been a drag on the total net movement of advisers,” Williams says.

*Broader Advice Business Models:

  • Financial Planning – largest model with licensees offering holistic advice
  • Investment Advice – licensees that provide mostly investment / portfolio advice
  • Super Funds – advisers attached to mostly industry super funds
  • Accounting – Financial Planning – licensees owned by accounting and advisers providing holistic advice