Press Releases Stockbrokers move beyond execution as HNW advice demand and complexity surge, research shows

High‑net‑worth advice already core to stockbroking

Nearly 80% of surveyed advisers have a focus on HNW clients, with 64% reporting that these clients represent at least half of their client base. Almost 80% of firms manage individual client portfolios exceeding $6 million, and over a quarter serve client bases that are at least 50% wholesale investors, reflecting the growing scale and sophistication of the sector.

“What’s clear from the data is that firms aren’t pivoting into high net worth advice, they’re already operating in it. The shift we’re seeing is how they’re broadening their role to support more of the client balance sheet, particularly as portfolios become larger and more complex,” said Denis Orrock, Chief Strategy Officer of Praemium, speaking at the conference.

Structural wealth growth reinforcing the transition

Despite Australia’s high net worth investable assets pool reaching approximately $4.4 trillion, only around 24% of high net worth individuals currently have a nominated financial adviser. At the same time, Australia is entering its largest intergenerational wealth transfer on record, with the acceleration of the baby boomer cohort driving increased demand for advice as more investors seek to structure, protect and transition their wealth efficiently in a tightening policy and tax environment.

This creates a widening gap between demand and access, alongside growing client complexity across retirement, succession, tax, alternatives and whole of wealth oversight.
“The high net worth segment continues to expand at pace, but advice penetration hasn’t kept up. That imbalance creates a clear runway for firms that can broaden their offering and deliver advice more consistently across a larger client base,” said Andrew Inwood, CEO of CoreData.

A decisive shift toward advice‑led, hybrid models

The research shows the direction of travel is clear. Seventy per cent of surveyed firms now identify as advisory‑led broking businesses, while just 5% believe purely transactional models will grow or remain dominant over time.

This shift is reflected not only in revenue mix, but in how firms position themselves. Almost a quarter of firms no longer use the term “stockbroker” in their marketing, with younger advisers particularly likely to describe their practices as investment‑led or advisory‑first.

“What we’re seeing with hybrid models is a response to two competing client expectations — the need for broader, more structured advice, alongside a continued preference for transparency and direct ownership. Firms that can combine both are creating a model that is more scalable and better aligned to high-net-worth client needs.” Inwood said.

Portfolio construction already broadening beyond equities

Portfolio construction is already evolving. While 95% of advisers continue to access Australian equities on behalf of clients, the investment universe has broadened significantly:

•    88% provide ETF access
•    90% access international equities
•    60% provide access to alternatives, with client demand accelerating

ETFs are expected to drive the strongest growth in client interest over the next three years, cited by 35% of advisers, while alternatives are increasingly used to support income, diversification, and downside resilience in HNW portfolios.

Critically, this expansion is occurring alongside — not instead of — direct ownership, with 79% of advisers citing HIN ownership as important to their clients for transparency, control and tax outcomes.

Younger advisers accelerating the pace of change

The research highlights a clear generational dynamic. Younger advisers are more likely to adopt broader portfolio frameworks, and scalable advice models earlier in the client lifecycle.

They are normalising hybrid advice models, using managed portfolio solutions, where appropriate, and reserving bespoke structuring for higher‑complexity clients, creating a pathway for firms to scale advice quality as portfolios grow.

“What we’re seeing from younger advisers is a different starting point. They’re building advice relationships earlier, using more structured portfolio approaches and thinking about scalability from day one. That is accelerating the adoption of hybrid models and enabling firms to capture a greater share of client wealth as complexity increases.” Orrock said.

An industry evolving with intent

The research presents a picture of an industry that is self‑aware, pragmatic, and already in transition.
As adviser numbers contract — down 48% since 2018 — stockbroking firms are deliberately positioning themselves to deliver greater value per client, through deeper advice, broader portfolios, and more durable revenue models.

Maria Lykouras, CEO of the Stockbrokers and Investment Advisers Association (SIAA), said the sector is evolving in a measured and deliberate way.

“At SIAA, we’re seeing stockbroking firms broaden their role, while remaining at the frontline of markets, responding to increasingly sophisticated client demand. They continue to help Australians navigate complexity and make decisions that shape long term outcomes — the core objectives of stockbroking and investment advice,” Maria said.

“As Australia’s private wealth market grows in scale and sophistication, the industry is well positioned to evolve with it, moving beyond traditional execution, to identifying and managing broader investment opportunities that deliver lasting value for investors and their communities.”