During the June quarter, 556 financial advisers registered with new licensees while1,460 ceased registrations. This brings the total number ofadvisers joining new licensees for the 12 months to 3,997.
Further analysis of these results indicates that nearly 7,500advisers ceased registrations with a licensee in the same timeperiod. This number is down 14% from the previous 12-month periodof June 2019.
"These movements continue to follow the trend that thefinancial advice industry has experienced since the release ofrecommendations from the Royal Commission," said AlexDunnin, executive director of research at RainmakerInformation.
"This was followed by tighter education requirements andexams mandated by the Financial Adviser Standards and EthicsAuthority, while COVID-19 has no doubt impacted the industry aswell."
"This is the seventh consecutive quarter of decreasingfinancial adviser numbers, bringing the size of the industry backto June 2016 numbers."
"Financial advisers aligned to banks continue to exit theindustry in greater numbers, falling 25% in the 12 months toJune."
Institutional or bank-aligned licensees account for 52% ofadvisers, down from 58% a year ago.
Non-institutionally owned licensees now hold 48% of advisers, upfrom 42% through the same period.
The five licensees with the largest number of new advisers areState Super Financial Services, Fortnum Private Wealth, Synchron,Lifespan Financial Planning and Interprac Financial Planning.
FUA in managed accounts platforms has continued its rapid growth, increasing by almost 50% p.a. in the last three years.
Australian retirees used to overwhelmingly favour retail superannuation funds. Not anymore.