Australia has seen 2,825 advisers cease operation in the first six months of the year, with only 19 new entrants a report shows.
The Adviser Ratings Musical Chairs report found that 1,750 advisers left the industry in the June quarter, eclipsing the 1066 that abandoned their authorisation in the first quarter. This leaves just 25,470 advisers across Australia.
"We would expect this trend to continue, particularly in the short term prior to larger numbers of new entrants, but also in the medium term," said the report.
We anticipate a higher than average number of ceased advisers over the next few years as more and more advisers ‘bite the bullet’ and call time on their advising careers leading up to 2024"
The rate of ceased advisers peaked in June, with 1001 pulling up stumps.
"We anticipate a higher than average number of ceased advisers over the next few years as more and more advisers ‘bite the bullet' and call time on their advising careers leading up to 2024."
Independent advisers were up slightly to 55.4% of total advisers while aligned advisers are down 0.5% to represent 44.6%.
The data highlighted a "dearth" of new advisers, with only 19 for the year. It noted that many advisers already have their degree and exam qualifications but have not yet completed the professional year. These "provisional" advisers are expected to show on ASIC's Financial Adviser Register (FAR) in early 2020.