More than 600 financial advisers joined the industry in the March quarter, the first rise in over three years and there was an increase of 213 licensees during the period, financial services researcher Rainmaker Information says in a new report. 

On an annual basis, however, the number of advisers registered with the Australian Securities and Investments Commission (ASIC) fell 8.2% to 16,155 in the 12 months to March. 

The decline represents a net loss of 1447 for the industry, which has been struggling with falling adviser numbers in the last couple of years due to a combination of factors such as rising costs and more stringent qualifications requirements. 

There was also a significant reduction in the number of advice licenses, which fell 13% or 266 over the 12-month period to 1824. Over the same period 1876 advisers joined an Australian financial services licensee while 3034 advisers ceased their association with one. 

“It is too early to determine if this upturn signifies a recovery or a temporary anomaly, but it provides a glimmer of hope for the industry,” Executive Director of Research and Compliance Alex Dunnin said. 

“While challenges persist, the encouraging increase in adviser numbers during the March 2023 quarter indicates a potential turnaround for the sector.” 

He says industry stakeholders are cautiously optimistic about the future and will closely monitor the market to assess whether the “positive momentum” can be sustained. 

Rainmaker says AMP Financial Planning emerged as the largest financial advice licensee with 508 verified financial advisers. 

Morgans Financial placed second (426), followed by Charter (302), Interprac (301), and Consultum (297). 

Rainmaker says Insignia Group is a financial adviser “power brand” with 1326 financial advisers while AMP came second with 989 advisers. 

Together the two businesses account for 14% of the market, representing 2315 financial advisers.