Monetary advisor headcount has grown simply 0.2% during the last decade, in response to a current report by Cerulli Associates. That’s regardless of trade efforts to attract extra folks into the career and develop next-generation expertise.
The wirehouse channel is shedding headcount on the quickest price, though it controls over one-third of trade property. As of 2023, the wirehouses had a 15% market share of advisor headcount. Cerulli forecasts that this may lower to 14% over the following 5 years, “primarily as a result of beneficial properties made by the RIA channels.”
The impartial dealer/vendor channel had the best headcount market share, at 16.5%, with the best asset share, at 12.7%. The impartial RIA channel, which doesn’t embrace hybrid RIAs, had about 16% headcount market share. Nevertheless, that channel noticed the most important acquire in asset market share over the previous 10 years, rising from 12% to 16% in 2023.
“Dealer/sellers ought to provide their advisors flexibility and strong expertise to fight the shift towards full independence,” Cerulli mentioned in its report.
The nationwide/regional b/ds had about 16% headcount and asset market share, whereas hybrid RIAs had 13% headcount share and 11% asset share. Insurance coverage b/ds had the bottom asset market share, at simply 3%, however a headcount of practically 14%. The retail financial institution b/d channel had 7% of the property and 9% of advisor headcount.
Throughout all channels, Cerulli reported $31.3 trillion in retail advisor-managed property as of 2023. Over two-thirds (67%) of these property have been managed by practices with greater than $500 million in AUM. About half of these practices are taken with an acquisition.
The analysis agency estimates that some 105,887 advisors plan to retire over the following 10 years, accounting for about 37% of headcount and 41% of property. But, 26% of these advisors who plan to retire say they’re not sure about their retirement plan. That will increase to 30% of advisors when simply trying on the impartial RIA channel.
“These advisors face a wide range of challenges related to growing a enterprise succession plan that’s vital for them to retire, together with discovering a professional purchaser for his or her observe (86%), structuring deal phrases (63%), and valuing their observe precisely (53%), amongst different challenges,” Cerulli mentioned in its report.
