{"id":62542,"date":"2022-09-06T15:21:05","date_gmt":"2022-09-06T05:21:05","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=62542"},"modified":"2022-09-06T15:21:05","modified_gmt":"2022-09-06T05:21:05","slug":"practice-profits-up-but-advisers-still-departing","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2022\/09\/06\/practice-profits-up-but-advisers-still-departing\/","title":{"rendered":"Practice Profits Up But Advisers Still Departing"},"content":{"rendered":"

Research firm Investment Trends<\/a>‘ latest 2022 Adviser Business Model Report<\/em>, has found that one in four advisers expect to leave the industry within the next five years, although nearly half of advisers report higher practice profitability than last year.<\/p>\n

The firm\u2019s, Research Director Dougal Guild<\/strong> told Riskinfo<\/em> that of those advisers suggesting they intend to leave the industry in the next five years, a quarter are aged 60 years or older,\u00a0 \u201c\u2026 and therefore many of these are simply moving into retirement.\u201d<\/p>\n

He says that generally however advisers have cited \u2018compliance burden\u2019 as the main challenge they deal with in their business for many years now, closely followed by \u2018regulatory change\/uncertainty\u2019.<\/p>\n

\"\"<\/a>
Dougal Guild.<\/figcaption><\/figure>\n

Guild says that administering fee disclosure and client opt-in was cited in Investment Trends\u2019 latest survey as a specific example of this ongoing regulatory change and compliance challenge.<\/p>\n

\u201cUltimately this leads to an increase in the cost of providing advice and an inability to provide that advice to those less wealthy clients who need it.\u201d<\/p>\n

The report, an in-depth study of Australian financial advisers and their business support needs, found that financial advisers\u2019 resilience has been put to the test over the past 12 months.<\/p>\n

The company says that the ever-changing regulatory landscape has seen the population of advisers drop from 20,000 in 2021 to 16,500 in 2022.<\/p>\n

The latest report also revealed that the move to self-licensing has eased over the past year as advisers begin to weigh up the benefits with the additional costs and compliance challenges associated with this model.<\/p>\n

\u201cDespite this, the movement of advisers around the industry will continue, as 70% looking to leave their licensee in the next 12 months intend to move to a self-licensed model.\u201d<\/p>\n

Guild says that decreasing NPS is, in part, \u201c\u2026driving the increasing number of advisers across both the ‘Aligned’ and ‘Majority independent\u2019 segments intention to leave their current licensee to be part of a self-licensed practice.\u201d<\/p>\n

He adds that the more successful advisers appear to have better adapted to regulatory change and new technologies to address this cost\/profitability issue.<\/p>\n

\u201cThey primarily service wealthier clients and are prepared to pay for tech solutions to enhance their advice offering and bolster profitability.\u201d<\/p>\n

… 46% of financial advisers stated that they were more profitable this year, compared to 34% in 2021…<\/p><\/blockquote>\n

However, despite the regulatory burdens and increased industry attrition, Investment Trends is seeing practice profitability increasing with 46% of financial advisers stating that they were more profitable this year, compared to 34% in 2021.<\/p>\n

\u201cThis is encouraging as it indicates advisers are adapting to the \u2018new world\u2019. Contributing to improved practice profit margins is a continued move by advisers focusing their efforts on acquiring and retaining higher value clients.”<\/p>\n

Guild says that overall, practices\u2019 net profit margins are moving in the right direction.<\/p>\n

\u201cAdvisers are refocusing efforts on new business post the Covid and FASEA disruption. This, combined with an increasing focus on higher value clients, has delivered record high levels of new inflows.\u201d<\/p>\n

The report is based on an in-depth online survey of 846 financial planners concluded between April and May 2022.<\/p>\n","protected":false},"excerpt":{"rendered":"

Research firm Investment Trends‘ latest 2022 Adviser Business Model Report, has found that one in four advisers expect to leave the industry within the next five years, although nearly half of advisers report higher practice profitability than last year. The firm\u2019s, Research Director Dougal Guild told Riskinfo that of those advisers suggesting they intend to […]<\/p>\n","protected":false},"author":24,"featured_media":62549,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,6,3,4474],"tags":[],"class_list":{"0":"post-62542","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-compliance-regulation","8":"category-dealer-groups","9":"category-general","10":"category-practice-management"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/62542","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=62542"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/62542\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/62549"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=62542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=62542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=62542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}