advice industry

It was a year that saw private capital become cool and asset consultants become kings. Advice reform continued to plod its clunky path, while the Dixon’s scandal lingered through the much-derided CSLR program. Through it all, surging demand and resilient investment markets fuelled a robust year for advisers, with their businesses streaking ahead of licensees in terms of profitability and value.

The evolving nature of advisers’ client bases, and the work they do for different parts of those, is leading to title creep. But there is little in the way of official guidance on what titles are appropriate.

There’s a pattern to the way adviser numbers oscillate around the end of the financial year, but there’s nothing common about the movement in the licensee sector at the moment.

The average financial adviser is older and brings in more revenue than they did a year ago, but that hasn’t translated into a fatter salary according to data from Adviser Ratings.

Just when the quantum of registered advisers will bottom out is anyone’s guess, but the final tally for FY24 could hardly be encouraging for a government desperate to shore up the numbers.

That consumers are influenced heavily by well known, trusted brands comes as no great surprise. What does, though, is that they rate life insurance as the least most important tool in ensuring financial security.

Adviser remuneration was a clear thematic this year, with the top two stories focusing on salary levels. Practice management and regulation, once again, played prominent roles in the news cycle, as did the profile of one very interesting young adviser.

Despite the emotional expenditure required to hold someone’s hand in the darkest hours of their life, whilst retaining a high degree of professional acumen, it is both a responsibility and an honour. But it can leave a scar, writes Drew Meredith.

“The worst case scenario is that things have definitely stabilised,” Wealth Data’s Colin Williams tells The Inside Adviser. “Best case scenario is that we’re seeing some growth.”