Colin Williams, WealthData's principal, highlighted the lack of new names on the Financial Adviser Register despite 157 candidates passing the recent exam—20 fewer than the numbers from March and eight less than June 2024. Although there was a net increase of 17 advisers this week, the overall net change for the year remains noteworthy, with a calendar YTD decline of 158 yet an increase of 122 in the financial YTD 2025/26.
This period saw 36 licensee owners achieving a net gain of 47 advisers, while 23 experienced net losses, resulting in a contraction of 36. This dynamic environment also recorded 16 new entrants and 94 advisements (appointments and resignations).
The need for financial advice remains, yet the choice of many to refrain from practice raises questions about the demands or barriers within the sector. This requires attention from industry stakeholders to address potential issues within the licensing and practice ecosystem.
The decision by a third of qualified advisers not to enter practice holds significant implications for the financial planning sector in Australia. For financial institutions and advisory firms, the declining numbers might lead to increased workloads for existing advisers and potentially limit access to financial advice for consumers.
This trend may prompt businesses to reassess the attractiveness of financial advising careers and the structures that support advisers transitioning from qualification to active practice.
Industry analysts suggest that further examination into the structural, economic, and educational barriers hindering new entrants is vital. Without addressing these issues, the industry may face challenges in sustaining a robust advisory pipeline, impacting consumer access to financial advice.
There is also an opportunity for professional bodies and regulatory authorities to explore solutions that might encourage more qualified individuals to pursue a career in financial advising, potentially including mentorship programs, support networks for newcomers, and refined licensing processes.
As the sector evolves, the fluctuation in adviser numbers underscores the need for dynamic strategies to adapt to these industry shifts, ensuring that financial advisory services remain effective and accessible across Australia.
