Wirehouses will continue to lose its share of assets in the wealth management industry, according to a recent report.
The share of cabling installations in industry assets has fallen from 33% in 2010 to 25% in 2021 – and that will fall to 22% by 2025, according to the Aite-Novarica Group says in a new report cited by FA-IQ sister publication FundFire.
Discount and online brokerages, meanwhile, will increase their share of industry assets from 23.5% in 2021 to 26.8% in 2025, overtaking distribution houses, according to the research firm’s report. and advice.
Additionally, clearing and custody firms serving independent registered investment advisers will see their market share grow from 25.8% in 2021 to 26.5% by 2025, according to Aite-Novarica Group, according to FundFire. .
In contrast, the market share controlled by other self-clearing retail brokers is expected to decline from 16.3% to 16% in 2025, while the share of assets controlled by the banking trust segment is expected to decline slightly from 9 .4% in 2021 to 8.9% by 2025, according to the report.
The wirehouse space was also the only area in the industry to see its total adviser headcount decline over the past decade, from 54,713 advisers in 2015 to 53,149 in 2020, according to Aite-Novarica Group, according to FundFire. .
The Covid-19 pandemic has led many wirehouse advisers to question the amount of support they receive from head office in light of the number of restrictions, the publication writes.
“For many counselors working from home during the pandemic, this has been a catalyst to start thinking about going freelance,” Marc Elzweig, an executive recruiter specializing in placing financial advisors at connection houses, regional, independent and RIA companies, told FundFire. “A lot of them wondered if they really needed the company they were affiliated with, and if it would be better to have a more flexible location.”
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