The latest Musical Chairs report published by Adviser Ratings notes a disappointing end to the 31 June financial year with a net decrease of 324 advisers (2.08%), reversing gains seen in the three months to 31 March. But notes strong signs of stability returning to the profession.
The report states that hopes of a flat or slight financial year increase were dashed in the last week of calendar year Q2, which saw most of the 587 deregistrations over Q2 lodged on the FAR by licensees.
The period also saw the highest number of Q2 switches in the last three years, with 477 switches recorded over the quarter.
This, states the report’s authors, suggests many of the advisers who ceased operations during the quarter will return to the FAR during Q3 2025.
“In a pleasing result, Q2 2025 has seen 103 new entrants registered at the halfway mark of their professional year, the highest Q2 result since the government introduced the new regime in 2019,” states the report.
“In comparison to Q2 2024, which saw a 4% year-over-year increase, Q2 2025 has seen an 8% year-over-year increase, also a positive outcome for the profession.”
The report also notes that the first half of 2024 saw 334 provisional advisers pass the exam, with 228 of these now being registered on the FAR. The year-over-year growth in new entrants shows a 37% increase on the previous year, and a strong compound annual growth rate (CAGR) of 45.23%.
The report notes that despite some minor net losses, there has been a general stabilisation in adviser numbers over the last two-and-a-half years, hovering at around 15,500 over the previous financial year.
“This general stability in adviser numbers, despite short-term movements due to the end of the financial year timing, is a testament to the profession’s resilience and should reassure stakeholders about its enduring strength,” states the report’s authors.
