Adviser numbers continue to fall to 2016 figures

Rainmaker Information's Financial Adviser Report has revealed that during the June quarter, 556 financial advisers registered with new licensees while 1,460 ceased registrations.

This brings the total number of advisers joining new licensees for the 12 months to 3,997.

Further analysis of these results indicates that nearly 7,500 advisers ceased registrations with a licensee in the same time period, down 14 per cent from the previous 12-month period of June 2019.

“These movements continue to follow the trend that the financial advice industry has experienced since the release of recommendations from the royal commission,” said Alex Dunnin, executive director of research at Rainmaker Information.

“This was followed by tighter education requirements and exams mandated by the Financial Adviser Standards and Ethics Authority, while COVID-19 has no doubt impacted the industry as well.”

According to Rainmaker, this is the seventh consecutive quarter of decreasing financial adviser numbers, bringing the size of the industry back to June 2016 numbers.

“Financial advisers aligned to banks continue to exit the industry in greater numbers, falling 25 per cent in the 12 months to June,” said Mr Dunnin.

Institutional or bank-aligned licensees account for 52 per cent of advisers, down from 58 per cent a year ago, while non-institutionally owned licensees now hold 48 per cent of advisers, up from 42 per cent through the same period.