Adviser number growth shoots?

The number of advisers that have exited the industry over the past four or five years appears to have plateaued, albeit another decline in 2023, last year's figures suggest that the losses have stabilised, according to Rainmaker Information's 2024: The year in wealth management webinar.

More positively, Rainmaker Information executive director of research Aman Ramrakha added that not only have adviser losses plateaued, but there are also signs of growth, "tiny green shoots," coming in.

Ramrakha continued that the distinction between aligned and non-aligned has become irrelevant.

Traditionally, the aligned category referred to the big six, including the four major banks, AMP, and Insignia Financial, but most of these entities have now exited the advice sector.

He noted that this shift has led to the emergence of new players, such as Entireti, Count, and Centrepoint Alliance, effectively replacing the "big six."

"We're seeing some big licensees come through off the back of the big six essentially exiting advice," Ramrakha said.

"That's something that's worth watching, and certainly something that we'll continue to watch over the next couple of years."

Meanwhile, on insurance, based on estimates, around 1000 to 1500 advisers are regularly offering insurance advice, which highlights the ongoing decline in the relevance of insurance within financial planning.

The industry is grappling with this shift, as well as the growing divide between direct and advised insurance, Ramrakha said.

He added that superannuation remains the primary source of insurance, and while total life insurance flows have remained relatively flat, risk inflows - which make up the majority of these flows - show no significant growth year on year.

He concluded this marks a challenging period for both active managers and insurers.