Good news for financial planning models
The financial planning model recorded the lowest level of resignations and changes in 2022, while the holistic model recorded the highest number of new AFSLs.
According to Wealth Data, between December 1, 2021 and April 21, 2022, a total of 2,556 resignations occurred and 683 advisors changed and are current.
The financial planning business model suffered the least losses, while the limited accounting consultancy saw significant losses of 98%.
Small licensed owners, those with fewer than 10 advisors, suffered the smallest percentage losses and gained the most number of advisors changed.
Meanwhile, there had been 52 self-licensed AFSLs (defined as a business with fewer than 10 advisors) that had started in 2022 as of April 21, 2022. These 52 businesses had 118 advisors attached to them and three licensed owners representing more 50% of advisors who changed.
The vast majority of them had holistic financial planning and advice models and those who had moved had moved on from large licensed landlords. Only 11 advisers had moved from a licensee of less than 10 advisers to another smaller one.
In terms of closures, defined as one licensee reduced to zero advisers, the number of closed licensees was 65 in 2022, affecting 115 advisers. Most of these closed licensees were from the limited accounting advisory (self-managed pension fund) model.
Of the 115 advisors affected, only 25 were current as of April 21 and 22 of them were from financial planning business models.