The third quarter of 2025 saw a significant rebound in the financial advice profession, with 15,447 practising advisers recorded, marking a net increase of 196 professionals, the strongest quarterly growth since the post-2018 downturn.
The rise – outlined in Advisor Ratings’ Q3 Musical Chairs report – was driven by 184 new entrants and the lowest number of departures (195) since education requirements were introduced. The bottom-line figure was also boosted by returning advisers.
While the total number of advisers grew at its fastest rate in seven years, the number of advice practices slightly fell from 5,944 to 5,934, reflecting ongoing consolidation and realignment within the sector.
Privately owned licensees continue to expand, capturing more than 78% of the market according to the report, with mid-to-large groups recording the strongest gains. Diversified groups, including major listed entities, continue to consolidate.
The report also revealed early signals of leadership shifts, with 44 practice directors moving on.
These departures, concentrated in practices aligned with HUB24 and Zurich, may influence future platform and insurance trends, states the report’s authors.
DBFO reforms and the January 2026 education deadline are shaping advisers’ career decisions, and upcoming DBFO2 measures are expected to streamline entry, broaden diversity, and facilitate re-entry for former advisers, the report states.
The report’s executive summary states that the underlying movements across the sector reveal an industry in “deep transition, simultaneously consolidating into larger, privately-owned ‘super-licensees’ and fragmenting with the continued emergence of new boutique firms”.
“This dynamic is unfolding against a backdrop of significant regulatory evolution…And the 1 January 2026 education deadline, a milestone that is increasingly influencing adviser career decisions, will shape the future composition of adviser numbers.”
Key Q3 facts
- Adviser numbers rose to 15,447, a net increase of 196 during the quarter
- 184 new advisers joined in Q3, including 51 women
- Privately owned licensees account for more than 78% of advisers
- An estimated 1,128 advisers are at risk of exiting before the 1 January 2026 education deadline
- All 16 new AFSLs established in Q3 were boutique licensees with up to 10 advisers
- 19 licensees ceased, many with more than a decade of operating history
