Freshwater Wealth expands rapidly in market where advisers hold the buying power

Karmel Walker

Freshwater Wealth continues to exceed growth expectations, expanding its advice network by 600% in less than 12-months to include seven financial advisers and growing its support team to 15 full-time members.

Most recently, Karmel Walker joined the business, taking the Freshwater Wealth offer to the Sunshine Coast, a significant growth hotspot for retirees, while Ben Shaw joined the Sydney team, bringing more than three decades experience in financial advice. The business is also in discussion with financial advisers in other Australian states.

According to Freshwater Wealth Partner Roger Perrett, the growth likely makes Freshwater Wealth the fastest-growing practice in the advice industry but also highlights the current dislocation in the advice market that is driving adviser movement.

“Our growth has certainly surpassed our expectations, which reflects on our offer to attract financial advisers, but also on the structural change that is taking place in the advice market which is facilitating and enabling advisers to hold the buying power.”

Perrett said the structural change is being driven by three main key factors:

1.Strong demand for advice: While financial adviser numbers have stabilised, the circa 15,400 advisers currently in the industry, is not enough to satisfy the demand for financial advice.

“Clients really value their relationship with their adviser and want to retain this relationship, often following their adviser to a new firm,” said Perrett.

He added: “Quality advice firms with a great brand and marketing, are also attracting very high volumes of new clients. This means there is a huge opportunity for advisers to grow and enhance their careers.”

2. Changes in attitudes around employment contracts: The financial advice employment market is not as restrictive as it once was in terms of the financial or legal ramifications of changing licensees or advice practices.

High profile legal cases have debated non-compete and non-solicitation clauses and while advisers should seek legal advice, the power of these clauses appears to be diminishing.

Further, advisers are looking for an alignment in personal values and are searching for appealing employment opportunities where advisers feel appreciated.

“As such, advice firms cannot rest on their laurels,” said Perrett. “Firms now need to be great at both attracting advisers, and very good at retaining people.”

3. Greater employment options: No longer do financial advisers just have the choice between AMP or bank-owned distribution arms, with greater opportunity to specialise in practices that focus on a key market segment such as particular generations, women or ESG investing.

For these reasons, advisers are in a strong position to evaluate their current employer and deciding if they stay or go.

“It is much lower risk and appealing for advisers to move,” said Perrett. “There is often great upside with less shackles for advisers to change firms.”