The registered funding advisory business grew by 2.1% in 2022, with 15,114 fiduciary funding advisors managing $114.1 trillion in property for 61.9 million purchasers, based on the Funding Adviser Affiliation and Nationwide Regulatory Providers’ just-released Funding Adviser Trade Snapshot report.
“Over the previous 5 years, over 22 million extra people have engaged an funding adviser for asset administration — a charge of progress in each the variety of particular person purchasers and property of roughly 12% per yr,” Karen Barr, CEO and president of the IAA, mentioned in asserting the report’s findings.
Whereas property underneath administration “declined for the primary time since 2008 as a result of a vacillating financial system, the funding advisory business was resilient, with each the variety of advisers and non-clerical staff climbing to a document excessive in 2022,” the report states.
The variety of purchasers utilizing asset administration companies elevated in 2022 to a document excessive of 54.3 million, a acquire of two.1%, based on the report. Different stats present that 91.7% of advisors employed 100 or fewer staff, 70.2% of advisors managed lower than $1 billion in property, and 88.5% managed lower than $5 billion.
The entire variety of purchasers not utilizing asset administration companies, “resembling purchasers utilizing solely monetary planning companies, declined in 2022 as digital recommendation choices developed and suppliers realigned their platforms, the report states. “Because of this, the entire variety of purchasers declined by 4.3%.”
Rule proposals from the Securities and Trade Fee “have the potential to result in important business change,” the report states, noting the safeguarding proposal, which the report says “would topic 1/3 of the business to custody necessities.”
Learn the gallery for 10 different stats in regards to the business from 2022 as described within the snapshot.
