SMSF Adviser Network shuts its doors, 85 advisers vanish from FAR

SMSF Adviser Network (SAN) has closed its doors and subsequently seen its entire fleet of 85 advisers delisted from ASIC's financial adviser register (FAR).

SAN's representatives were predominantly accountants who operated under a limited licence to provide advice on SMSF establishments and classes of product, but not specific products, under authorisation provided by the National Tax & Accountants' Association's (NTAA) Australian financial services licence (AFSL).

According to Padua WealthData, there was a net decline of 88 advisers this week, 85 of which had been tied to SAN. Of them, two moved to NTAA's less restrictive licence, Advice Assist Australia, making it now home to 15 advisers.

NTAA executive president Jack Stuk confirmed to Financial Standard the SAN business has been deregistered but declined to comment further.

SAN had seen a drastic reduction of adviser numbers over recent years, dwindling to 90 after the deadline for education requirements passed at the beginning of the year.

Speaking to Financial Standard, Financial Advice Association Australia (FAAA) general manager of policy, advocacy and standard Phil Anderson said the limited advice licence model has shrunk significantly in recent years for several reasons, including the education requirements and a lack of recruitment, as those operating under the limited licence, or looking to do so, were still caught by the exam and education requirements.

"SMSF Adviser Network was at one point the largest licensee as many accountants have jumped onto this limited licensing option, but they were impacted by the exam and education requirement," Anderson said.

"We've seen a significant reduction in advisers who operate on such an option. There are very few options now for people who want to operate on a limited licence mode, and those that still do have a limited licence are not particularly interested in recruiting additional advisers."

He thinks the model has become "uneconomical" for businesses to continue to operate, which will subsequently impact the SMSF advice sector.

"There were warning signs that the limited licence space was contracting... I can't talk for the specific factors that influenced this [SAN's] decision, but you could conclude that the continuation to operate with a lack of scale becomes very difficult," Anderson said.

"At an aggregate level, there will be less people providing SMSF advice as a result of the decline, more broadly, of limited licenses and this particular closure."