Super fund-backed AFSL adviser numbers drop: Rainmaker

Industry superannuation funds will continue to adopt a hybrid framework of advice, integrating digital and human channels, as the number of advisers under super funds owned AFSL's has declined progressively in the last five years.

Rainmaker Information reviewed a number of funds including Australian Retirement Trust, Aware Super and HESTA and found combined adviser numbers fell from 687 in March 2021 to 501 by March 2026.

"This contraction contrasts sharply with the expansion in both membership and funds under management," the report said.

"The financial advice workforce continues to contract, limiting the capacity of traditional, in-person models to meet this level of demand. Face-to-face advice alone is unlikely to bridge this gap."

The report found a small number of funds anticipated this shift and embedded digital advice within their member offerings, initially focusing on intra-fund needs such as investment selection, contribution optimisation, and insurance guidance.

"However, given the pace and scale at which the system is growing, this is no longer sufficient," the report said.

"Super funds are now beginning to combine internal capability-building and strategic partnerships with external providers, enabling more scalable, accessible, and cost-effective delivery of advice across a broad and diverse membership base."

The report sees digital advice evolving from a niche capability into a core channel for member engagement for industry funds.

"Digital advice is expected to play an increasingly central role in addressing the structural advice gap, particularly for members with simpler financial needs, as funds continue to refine delivery models and enhance member engagement," it said.

Total number of ASIC-registered financial advisers fell in the quarter to the lowest recorded number of advisers since June 2003 reaching 15,157.

The mid-sized AFSLs in the size bands of 11-50 were the fastest growing, increasing their total number of advisers by 10.4% over the 12 months. The five AFSLs attracting the most advisers were Akumin Financial Planning, RI Advice group, Picture Wealth, Consultum and Canaccord Genuity Financial.