The ratio of advisers that leave the industry versus replacements is six-to-one, with the sector likely to reach 14,964 planners by the end of the year according to reseacrh group Adviser Ratings.
4,103 advisers ceased in 2021, with only 244 new entrants and 460 returning advisers for a net loss of over 3,000 according the ‘2022 Australian Financial Advice Landscape’ report.
“Businesses and government need to work on solutions to promote this industry to new talent,” the report stated. “Unfortunately, if nothing changes, the bold prediction of 15,000 financial advisers at the end of 2022 will become a reality.”
However, it noted in the new report the extension did impact the number of advisers that could have left.
“The numbers may have been lower if it were not for an eleventh hour reprieve allowing advisers to retake failed exams in 2022.”
According to the most recent figure by Wealth Data there are 17,111 advisers on ASIC’s Financial Adviser Register as of 21 April.
AR predicts the industry will reach 12,271 advisers by the end of 2025, coinciding with the education standard deadline which requires advisers to attain a relevant tertiary qualification.
AR founder Angus Woods tells Professional Planner this prediction is based on the current legislation as it stands.