Our CEO, Mark Hoven spoke to Ausbiz today about the decline in adviser numbers and the current state of the advice industry. As we know adviser numbers have been falling for some time due to increased regulations, the complexity of maintaining compliance and meeting the new educational requirements. These factors have increased the cost of running a financial planning business and quite literally forced advisers out of the industry.
At Adviser Ratings, we are drilling down into the licensee sector, which is still top-heavy with 60% of advisers licensed under the top 15% of licensees. The long-term sustainability of the current model remains to be seen. With the demand for advice growing, the pressure is on to deliver while remaining compliant. A change to regulations for scaled or limited advice may be the answer….