{"id":59613,"date":"2022-02-22T13:21:59","date_gmt":"2022-02-22T02:21:59","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=59613"},"modified":"2024-10-30T08:44:13","modified_gmt":"2024-10-29T22:44:13","slug":"adviser-numbers-chronicling-the-past-five-years","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2022\/02\/22\/adviser-numbers-chronicling-the-past-five-years\/","title":{"rendered":"Adviser Numbers \u2013 Chronicling the Past Five Years"},"content":{"rendered":"

Despite the advice industry shrinking by a third of its size since 2019, latest analysis by Adviser Ratings<\/a> suggests it has further to fall before it plateaus.<\/p>\n

The research firm\u2019s latest Adviser Musical Chairs Report<\/em> for Q4 2021 says it expects numbers to fall below the 15,000 mark in the next two to three years.<\/p>\n

The prediction is part of a special feature An industry in freefall \u2013 chronicling the last few years<\/em> which states that over the past five years more than 10,000 advisers have left the workforce, \u201c\u2026which raises doubts about the ability of the current cohort to meet the needs of retiring Australians.\u201d<\/p>\n

…the number of new entrants continues to be dwarfed by exiting advisers…<\/p><\/blockquote>\n

It says that from a peak of almost 28,000 in 2019, there are now fewer than 17,500 registered financial advisers. And Adviser Ratings says the number of new entrants continues to be dwarfed by exiting advisers.<\/p>\n

\"\"<\/a>
Courtesy of Adviser Ratings.<\/figcaption><\/figure>\n

In its special report Adviser Ratings says that when the Banking Royal Commission exposed the extent of wrongdoing within the advice industry, \u201c\u2026few could argue advice practices could avoid the pursuit of professionalisation.”<\/p>\n

It says that since the start of the investigation and the establishment of FASEA, the industry looks very different. \u201cOn one hand, standards have been raised, which our analysis shows has resulted in better quality ratings for advisers. Most advisers are now degree qualified or equivalent and have passed their exam.\u201d<\/p>\n

On the other hand more than 10,000 have left the adviser workforce.<\/p>\n

\u201dUndoubtedly, this has implications for hundreds of thousands of pre-retirees and retirees who want advice, but can\u2019t access it or afford to pay for it. In fact, recent Adviser Ratings consumer research showed most of the surveyed group saw value in advice, but only one in 20 would pay the 2021 median advice fee of $3,256.\u201d<\/p>\n

As to its expectation that more will leave the industry in coming years, Adviser Ratings adds that leaving education standards to one side, advisers tell them they are grappling with continual profitability and cost pressure, as well as Covid uncertainty and limited time to meet compliance obligations.<\/p>\n

The research also shows one in six advisers who have departed the industry had passed the exam “…which indicates a commitment to professional benchmarks is not always indicative of a long-term desire to stick around.<\/p>\n

\u201cWhile regulators are looking at what they can do to induce more people into advice careers, they will need to act quickly to address what could be a dire situation for Australians who want affordable financial advice,\u201d it says.<\/p>\n

\"\"<\/a>
Courtesy of Adviser Ratings.<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"

Despite the advice industry shrinking by a third of its size since 2019, latest analysis by Adviser Ratings suggests it has further to fall before it plateaus. The research firm\u2019s latest Adviser Musical Chairs Report for Q4 2021 says it expects numbers to fall below the 15,000 mark in the next two to three years. […]<\/p>\n","protected":false},"author":24,"featured_media":59617,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,3],"tags":[],"class_list":["post-59613","post","type-post","status-publish","format-standard","has-post-thumbnail","category-compliance-regulation","category-general"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/59613","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=59613"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/59613\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/59617"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=59613"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=59613"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=59613"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}