Moribund financial adviser numbers are continuing to impact the bottom line for the Financial Advice Association of Australia (FAAA) and the numbers will not be helped by another expected end of year exodus.
The FAAA’s latest annual report has revealed the organisation’s challenges in maintaining services to members in the face of declining membership subscriptions and practice fees but association chief executive, Sarah Abood, points to strategies aimed at rebuilding numbers.
Speaking to Financial Newswire, Abood acknowledged the challenges facing her organisation, not least the expectation of a further 1000 advisers exiting the profession at the end of the calendar year due to the education requirements and personal career decisions.
She said that while some assessments pointed to a higher number of exits, the FAAA’s best guess based on various intention surveys suggested around 1,000 advisers.
Abood agreed that the current situation demanded the FAAA adopted new strategies and included amongst those was the continuing efforts around the Advice Academy aimed at attracting professional year candidates.
As well, she noted another round of advertising armed at career changes, whilst noting bringing a “Know Your Client” anti-money laundering tool to market in associated with Korda Mentha.
The FAAA’s annual report has painted a picture of an organisation with solid reserves but with diminishing inflows reflecting the declining number of financial advisers in Australia.
It showed that total revenue for the most recent (2025) financial year was down just over $3.1 million with membership subscripts down to the tune of $336,000 to $6.216 million, with practice fees down $22,000.
However, on the positive side, the association did better out of its conferences and seminars, booking $3.121 million and better again with respect to its Certified Financial Planner designation program which was up $70,000 over the prior corresponding period to $260,000.
The annual report also noted that the FAAA’s merger with the Association of Financial Advisers had generated a “merger gain” of $2.985 million.
Abood acknowledged that the key to the FAAA’s future lies in growing the profession and the proportion of advisers who choose to be members of an association.