The rise of Micro AFSLs is highlighted in a presentation by Wealth Data looking at financial adviser movements for the 2023/24 financial year.
Looking at new licensees, the firm’s Colin Williams, says that in this latest financial year none of the new Financial Planning licensees currently have 10 or more advisers.
He says of the 92 new licensees in this sector:
- 51 only have one adviser
- 25 have two advisers
- 11 have three to four advisers
- Five have five to nine advisers
Looking at the Accounting – Financial Planning model Williams says this business model has shown modest growth over both the 2022-23 and the 2023-24 fiscal years.
“This is mostly due to new licensees being formed under this model and the advisers (practices), were previously managed by large licensees linked to the financial planning business model.”
Of Accounting – Limited Advice he says this business model continues to decline at the highest rate of all business models.
In the 2022-23 financial year, Williams says of the new licensees, only one of the new Financial Planning licensees currently has 20 or more advisers. More than half have either one or two advisers.
Williams’ presentation also includes charts delving into:
- Overview of the adviser market Since 2017 – By Calendar Year
- Financial Year 2023/24 Versus 2022/23
- Licensee Owners – Most and Least Growth
- New Entrants and Ceased Advisers
- Composition Change By Licensee
Click here to access the full presentation.
