Exits To Continue: The Number Of Advisers Planning To Leave

Following several challenging years for adviser numbers, the profession is poised to see further losses this year, as nearly one in four advisers are considering leaving, according to our research.

As part of our annual Landscape Report, we asked advisers about their intention to stay in the industry in 2023. Eleven per cent signalled they planned to leave, while 12 per cent were unsure whether they would stay or go. Pleasingly, the remaining 77 per cent said they intended to stick around.

Those planning to depart represented most licensee segments, with the exception of banks and limited licensees, which have little presence in the new licensee landscape.  

The intentions come as the industry awaits the Federal Government’s response to the Quality of Advice Review, which was handed to Treasury at the end of last year.

In the past few years, advisers have been vocal about how difficult it is to maintain and grow profitability amid rising compliance and insurance costs, as well as general inflation. More than 90 per cent of practices told us they plan to lift their fees this year in a bid to keep up.

How many advisers plan to switch licensees?

Amid the cost crunch, we also asked advisers if they planned to stay at the same licensee. While three-quarters said yes, the remaining quarter were either unsure or planning to switch to a new licensee.

Figure 1 – Proportion of advisers planning on switching licensees



Source: Adviser Ratings

Most advisers who planned to switch represented the diversified licensee segment, with more than half from that cohort planning to apply for their own licence.  

Around one-in-seven advisers with solo or boutique licensees planned to switch this year, with all of them intending to sell their licence. Our intel suggests this group has been disproportionately affected by rising costs.

But while our survey shows there will be some switching, the results indicate another quieter year for licensee movement. Last year was the slowest for licensee switching since 2014, with fewer than 1600 advisers moving to a new home. The profession experienced almost the same number of departures (1590).

In contrast, the preceding four years brought a frenzy of switching and adviser exits. Almost 11,000 advisers moved to new licensees, as several bank licensees crumbled, while more than 12,000 advisers exited.

Adviser Ratings has previously predicted industry numbers would settle around the 13,000 mark at the end of 2025. However, with potential new regulations coming into play and a general slowing of adviser exits, we are now hoping we’ll hit the low point sooner – and numbers will gradually start to recover.

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