The first quarter of 2021 has seen the fewest amount of advisers leave in three years according to research from Adviser Ratings.
The latest Musical Chairs report found 433 advisers left the industry in the first quarter of 2022 compared to the record 1,810 advisers that departed the previous quarter due to the FASEA exam deadline which included 847 leaving in December.
For perspective, adviser numbers shrank just over one per cent compared to 6.5 per cent in the final quarter of 2021.
“After an unsettling final quarter of 2021, the new year heralded a return to stability for the advice market, but as always, the promise of change on the horizon looms,” the report stated.
Previous research from AR predicted the number of advisers to fall to 14,964 by the end of the year. Data published on Thursday afternoon from Wealth Data shows the ASIC Financial Adviser Register is currently at 17,044.
“As we enter the second quarter of 2022, almost 900 advisers are yet to successfully complete the FASEA exam given the extension received after the deadline for end of 2021,” the latest report stated. “They have until September to do so.”
Moving activity across licensees in 1Q22 mimicked the previous quarter, the research found, with just over 600 advisers finding new homes.
“The shifts among licensees were fairly consistent across the three months, with a slight rise in activity in March.”
The report stated the start of the year typically doesn’t bring as much switching as the two middle quarters.
“Many advisers are still settling into the post-lockdown phase, with a mix of office and remote work, but as networking increases throughout the year, we also expect to see a rise in licensee musical chairs. Corporate activity will probably bolster this, as banks and insurers continue to exit advice.”
Some 62 per cent of advisers are now licensed by privately-owned boutiques.
With attention shifted towards the election, the report noted both parties are angling for advisers’ votes but a survey from AR found advisers don’t support any change.
“By and large, they said no. In fact, more than three-quarters were not in favour of a change.”
Speaking on a Financial Planning Association webcast earlier this month Jones said he was “100 per cent committed” to enacting the experience pathway if he gets elected and said this week he is confident Labor will form government.
Jones first announced the policy proposal last December which led to the government putting it up for consultation.
Data from YouGov currently projects Labor winning 80 seats which is more than enough to form government.