The Financial Adviser Register (FAR) has reached a critical juncture, with a recent decline in adviser numbers falling below 15,000 for the first time since its inception in 2015. This development is particularly noteworthy as it marks a significant breakpoint for the profession, according to Colin Williams, founder of Padua Wealth Data. The FAR's journey has been marked by a steady decline, with the headcount bottoming out at 14,899 as of June 30th. This is a stark contrast to the initial surge of over 19,000 appointments when the FAR commenced operations.
The end of the financial year (EOFY) typically sees a surge in exits, and FY26 was no exception. Between May 28th and June 30th, adviser numbers dropped by 271, which is a slight improvement on the previous year's decline of 304. However, the impact of the higher financial adviser education standards, which came into effect from January 1st, cannot be overlooked. This has triggered a significant outflow at the start of 2026, further exacerbating the decline.
The combined effect has seen the FAR drop by 399 since the start of July 2025, when there were 15,298 registered advisers. The question arises: where are the advisers going? The data reveals a diverse range of destinations, with some AFSL types experiencing significant net changes. Accounting – limited advice saw the largest decline, with a net loss of 189, followed by superfund-based advice (-42) and accounting – financial planning (-22).
However, the story is not all doom and gloom. There has been a slight rebound, with the first two days of FY27 delivering an uplift of 85, bringing the total advisers up to 14,984 for the week ending July 2nd. This is a positive sign, but the actual change for the week is a net loss of 112. The results of ASIC's June adviser exam sitting are expected to provide another boost to the profession, with new entrants joining the FAR.
The weekly movements among AFSLs reveal a mixed picture. Bespoke Wealth saw the most growth, with a net gain of six advisers, all of which switched from CHPW Financial. Springboard Wealth had a net gain of four advisers from InterPrac, while Gill and Cosaw saw a net gain of two. However, Rhombus Enterprises suffered a major blow, losing 18 advisers, while ART Group Services saw an AFSL down by 15, and Sequoia's InterPrac lost 15 advisers, leaving just 125 advisers remaining at the group.
In conclusion, the FAR's decline below 15,000 is a significant development, with a range of factors contributing to the outflow. While there are signs of a slight rebound, the profession faces a critical challenge in resolving this decline. The future of the FAR and the financial advice industry as a whole hangs in the balance, with the need for innovative solutions and a renewed focus on attracting and retaining advisers.
Personally, I think the decline in adviser numbers is a wake-up call for the industry. It highlights the need for a renewed focus on attracting and retaining advisers, particularly in the face of increasing competition and changing client expectations. In my opinion, the industry must take a step back and re-evaluate its approach to financial advice, with a focus on innovation and client-centric solutions. From my perspective, the decline in adviser numbers is a symptom of a deeper issue, and addressing it requires a comprehensive and coordinated effort from the entire industry.
