[EXCLUSIVE] Banks capture most new AFAs

Research by Good Returns and ASSET Magazine shows the biggest proportion of new AFAs in the past couple of years have ended up in banks.

Friday, June 3rd 2016, 6:00AM

The majority of the new AFAs are with the country’s biggest bank, ANZ.

Of the 202 new AFAs since 2014 59, or 29% are working in banks.

Out of the banks there is one clear winner - ANZ. Twenty six of the new AFAs are with the country’s biggest bank. Second equal is ASB and BNZ with 12 apiece, and Westpac, which was considered to have strong advice business, only picked up seven of the new AFAs.

Sharebrokers where the second biggest employer of new AFAs with 20 people joining their ranks. Craigs Investment Partners was clearly the most active recruiting 50% of these new advisers.

The balance were spread across a number of firms including JB Were, First New Zealand Capital and Hamilton Hindin Green.

The next biggest employer of new AFAs was within funds management organisations. It should be noted that it is hard to know if the AFA is in a client facing role or not.

However, 19 people joined funds management organisations and Milford was one of the biggest homes for these people, closely followed by NZ Funds Management.

Milford Asset Management managing director Anthony Quirk recently described the company’s private wealth management business as the “jewel in the crown.”

Just one AFA joined the Financial Markets Authority.

The balance of AFAs are spread between many organisations. Some are within the real estate world, a couple work for external disputes resolution schemes. There is a small group who have already deregistered or have disclosed that they don’t give advice and there are a handful who, despite our research, are hard to pigeon hole.

Notes:

A full and more detailed break down of this research will appear in ASSET Magazine.
This research is based on current employer. Some AFAs started off with different employers to their current ones.
Our classification is based on employer rather than role within the company.

Tags: AFA