Licensees will have to focus on restructuring how they operate and improve their risk/return profile to fit the needs of a changing advice industry and more closely align with the risk they are accepting.

CoreData Research consulting director Grahame Evans tells Professional Planner research shows there will be a “reset of the advice industry” which will notably affect licensees.

As bigger players have departed the industry, such as AMP, Evans says there has to be “a complete restructure of how the licensees world operates”.

In August 2024, AMP announced to the ASX that Entireti would acquire its advice licensees and self-licensed service provider Jigsaw, not long after Insignia Financial had divested most of its licensees.

“In the past, we had big institutions who had the money to train and develop people and bring them through,” Evans says.