While it’s no secret adviser numbers have been plunging across the country, some geographical regions have had a worse time than others.
When we look at the distribution of advisers, it’ll be little surprise to hear that most are still clustered around the metropolitan centres, especially on the East Coast. However, amid COVID-19 related lockdowns, the rise of working from home and skyrocketing property prices, we’ve seen more advisers – like other professionals – choosing regional centres in the past few years.
Having said that, with the entire adviser workforce down 16 per cent – or more than 3300 in the year to December 2021 – last year we saw at least some decline in all regions across Australia. It was a case of some regions contracting at a slower pace than others.
Which regions suffered the most?
Data from the latest Adviser Ratings Landscape Report reveals several regions in Australia have lost more than one-in-four advisers in a 12-month period to the end of last year. It came as many of these regions simultaneously recorded population growth.
In the Australian Capital Territory, the highest losses were recorded in the Capital (33 per cent) and Mid North Coast (26 per cent) regions, while New South Wales saw the largest declines in the geographical zones that cover Sydney’s South-West and Outer West/Blue Mountains regions (27 per cent) and Inner West, Inner South-West and Blacktown regions (27 per cent).
Further north, three Queensland regions lost more than one-in-four advisers. The Darling Downs – Maranoa region saw almost half of its advisers depart (46 per cent), while Brisbane’s North region (42 per cent) and the Wide Bay region similarly dropped significantly (26 per cent).
Meanwhile, the already small adviser presence in outback Northern Territory contracted by 60 per cent.
Of course, the heavy adviser losses in these regions have implications for clients who may lose their adviser or have to travel further for advice. It has the potential to significantly increase unmet advice needs.
Similarly, it affects other advisers, who may have to waitlist or turn prospective clients away. For advisers either starting out or considering a treechange, there may also be opportunities in regions where there is a clear need for a greater presence.
Figure 1 – Adviser regional distribution
Source: Adviser Ratings' 2022 Australian Financial Advice Landscape Report; ASIC Financial Advisers Register (FAR).
Adviser populations dropped across Victoria, South Australia, Tasmania and Western Australia, but the losses were below the 25 per cent threshold we’ve used for this particular piece of analysis.
Again, while no regions grew their adviser populations amid the 2021 mass exodus, the districts that contracted the least were NSW’s Newcastle and Lake Macquarie region, Victoria’s Bunbury / Mandurah region and Brisbane’s Inner City region.
Given adviser numbers are slowly stabilising, we’ll be looking closely at how regions across Australia are faring when the advice population starts rising again.
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Comments1
"You guys need to learn how to read a map: In the Australian Capital Territory, the highest losses were recorded in .... and Mid North Coast (26 per cent) Victoria’s Bunbury / Mandurah region"
Mick Gionfriddo 15:59 on 05 Oct 22