Financial Advice Industry Sees Growth in Advisers for 2024, Optimism for Stability Ahead

In the ever-evolving world of financial advice, it can be challenging to predict what the future holds for advisers. However, Wealth Data founder Colin Williams is optimistic that adviser losses will be less severe in 2024 due to increasing stability in the profession.

According to recent data, the financial advice industry saw a net growth of eight advisers in the week ending 23 May, bringing the 2024 year-to-date numbers to 22 advisers. While this may seem like a modest increase, Williams points out that at the same time last year, the numbers were very similar, with a net growth of 24 advisers.

Williams expressed his optimism for the future of the industry, noting that the total loss of advisers in 2024 may not be as severe as in previous years. He attributes this to the increasing stability and clarity in the profession, particularly in regards to the experienced provider pathway and qualification standards.

Reflecting on conversations with advisers, Williams observed a shift in focus towards the future of the industry rather than concerns about exiting altogether. He noted that the industry is now more steady and clearer, allowing advisers to plan for the future with more confidence.

Recent guidance from ASIC on accessing the experience pathway has also provided clarity for advisers and licensees, further contributing to the stability of the profession. The pathway allows experienced financial advisers to meet qualification standards without further education, provided they meet certain criteria.

Weekly movements in the industry have shown a positive trend, with new entrants joining the profession and licensee owners experiencing net gains in adviser numbers. While there have been some losses, overall the industry appears to be on a path towards growth and stability.

As we look towards the future of the financial advice industry, it is clear that optimism and stability are key factors in ensuring the continued success of advisers. With increasing clarity and support from regulatory bodies, advisers can focus on what truly matters – providing valuable advice to their clients and shaping the future of the profession.