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‘Scaled operators’ leading advice profession forward

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22 June 2026 by Laura Dew, Money Management

Article link: https://www.moneymanagement.com.au/scaled-operators-leading-advice-profession-forward/

The number of advisers looking to exit the advice profession stands at its lowest level since FASEA, according to the latest Adviser Ratings annual report, with those remaining described as ‘scaled operators’.

The number of advisers looking to exit the advice profession is standing at its lowest level since FASEA, according to the latest Adviser Ratings industry report.

The 2026 Landscape Report of 7,000 advisers found exit intent has fallen to 3.9 per cent, from 4.2 per cent last year and some 92 per cent of advisers said they intend to stay in the profession.

Although exit intent has declined, there were still a heavy loss in the past year with 391 losses compared to 148 in the year prior and Adviser Ratings suggested this was the result of final culmination of the FASEA education hurdle and 10-year experience pathway.

“Net exits jumped sharply as the last cohort of advisers unable or unwilling to meet FASEA’s education and exam standards exited the profession.”

Those advisers who remain in the industry were described as ‘scaled operators’ rather than being merely ‘survivors’ of the recent advice problems. There are currently 15,084 advisers, almost half the number at the time of FASEA at 2019.

“The average adviser of 2026 is a scaling operator, not a survivor: a $102 million book inside a $226 million practice, serving 136 clients with 102 of them recurring. Capacity is being unlocked, not shed.

“Average practice revenue is up +40 per cent since 2023, the proportion earning over $1.5 million has doubled, and 62 per cent intend to grow adviser headcount in the next 12 months.”

Referencing the scaling theme, it said multi-adviser firms grew revenue by $1.9 million (+45 per cent) in three years, lapping solo practices that slipped in 2026 after a strong 2025. The average across all practices was up 40 per cent. This demonstrates a “clear signal that scale economics are now the dominant driver of practice income”, it said.

Part of their scaling relates to the use of artificial intelligence (AI) with 89 per cent of practices currently using AI or planning to do so. Those who say they are ‘unsure’ about its use has fallen from 17 per cent to 3 per cent in two years, indicating it is being welcomed or accepted by the majority of practices.

Over half (58 per cent) are already using AI for their statement or record of advice, up from 46 per cent last year, and the volume who are using paid AI subscriptions has doubled to 60 per cent in a single year with the most popular option being Microsoft Copilot.

“The practice of 2026 is a larger, more deliberately engineered business than its 2023 counterpart. Revenue is up across the board, the smallest practices are being squeezed out of the distribution, and the dominant growth lever has rotated from buying revenue to building capacity. The next 12 months will be decided on how well practices convert that intent into adviser productivity.”

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