Small businesses looking to take charge are increasingly turning to self-licensing for their future plans. The sentiment appears to be growing in the industry based on the attention it’s garnered in press during 2023 and 2024.
Journalist Rhea Nath (Money Management) spoke to Wealth Data who found some 27.1 per cent of the advice industry work at what it termed as “micro-AFSLs” or firms with less than 10 advisers.
Nath noted that similarly, Adviser Ratings found small licensee groups of one to 10 advisers have seen a 17 per cent rise since 2018, with advisers preferring self-licensing over mid-tier licensees and dealer groups.
Large licensees are seeing this as a commercial threat and have been busy establishing support business to retain advisers and stem net losses from their groups. Whether advisers wish to continue paying an overlord remains to be seen.
We’re encouraged by small businesses trying to shift away from conflicted positions and are fully supportive of the trend to small business self-licensing and micro-AFSLs.