Ord Minnett had a net increase of 39 advisers (16%), Count Financial increased by 31 (12%) and Industry Fund Services increased by 22 (24%), according to research from Rainmaker Information’s Financial Adviser Report.
Each of these organisations also generated the largest number of newly registered advisers to their AFSL.
“We are continuing to see adviser numbers decrease overall, however, the largest AFSLs with more than 250 advisers, perhaps due their scale, seem to be coping better in the current climate,” said Alex Dunnin, executive director of research and compliance at Rainmaker Information.
“Adviser groups with between 100 and 250 advisers had a 25% reduction in total advisers, but the largest AFSLs (more than 250 advisers) experienced just a 5% reduction. AFSLs with two or less advisers suffered a 28% fall in adviser numbers.”
The six AFSLs with the largest net growth all have between 100 to 500 advisers, with Alliance Wealth, Interprac Financial Planning and Matrix Planning Solutions rounding out this group.
The total number of advisers continued to fall towards the end of 2022, with 15,529 advisers as at 31 December 2022.
This was a 17% reduction in the calendar year, bringing total adviser numbers to the lowest level in 19 years.
AMP financial planning is still the largest AFSL by the number of advisers, with 546.
“While the advice industry has experienced a great deal of uncertainty, with a significant reduction in advisers leaving, there are still AFSLs looking to expand their operations,” said Dunnin.
“We’re also seeing a shift where non-aligned AFSLs are experiencing a slightly higher percentage decline than bank-aligned AFSLs.”
Non-aligned AFSLs saw a reduction of 17.6% in their adviser numbers in 2022 compared to 16.8% for aligned AFSLs.
In contrast non-aligned AFSLs saw a reduction of 5.2% in their adviser numbers in 2021 compared to 18% for aligned AFSLs.
The total number of AFSLs fell 11% in 2022 to reach 1,611.
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Superannuation fees have fallen 2% over the last financial year to reach to 0.93% per annum, the lowest total expense ratio on record.
Australia’s financial adviser numbers have stabilised at 16,000 and is projected to climb, but this may not be enough to avert a supply shortfall.
