iCrowdNewswire - Nov 25, 2015
Advisor Headcount Increased in 2014, First Time in Nine Years
November 2015, BOSTON. The latest research from global analytics firm Cerulli Associates finds that the industry’s total U.S. advisor headcount increased for the first time in nine years–by 1.1%.
“Many positive developments led to the headcount growth last year,” states Kenton Shirk, associate director at Cerulli. “From the advisor perspective, there is a heavier focus on teaming and onboarding rookie advisors into multi-advisor practices. Advisors are eager to hire junior advisors so they can refocus their own efforts on their largest and most ideal clients. There is also greater awareness and concern about succession preparedness.”
“While all of this recent growth has provided some positive momentum, the industry is still not in the clear,” Shirk explains. Although there was an uptick in the number of advisors in 2014, Cerulli projects that the industry’s headcount will begin declining again in 2019 as advisor retirements increase.
“In 2020, Cerulli believes that modest headcount gains will be trumped by a sizable uptick in advisor retirements,” Shirk continues. “The industry’s headcount will begin to decline once again at an even more pronounced rate than in the recent years.”
Cerulli projects that the industry will see a small increase in headcount over the next three years, but by 2019 there will be a sharper decrease as advisors exit the business to retire. To minimize the decrease in headcount, Cerulli recommends the industry begins laying a solid foundation to recruit and groom new advisors in the upcoming years.
About Cerulli Associates
Headquartered in Boston with offices in London and Singapore, Cerulli Associates is a global analytics firm that provides financial institutions with guidance in strategic positioning and new business development. Our analysts blend industry knowledge, original research, and data analysis to bring perspective to current market conditions and forecasts for future developments.
Cerulli’s research product line includes Cerulli Reports, The Cerulli Edge series, and Cerulli Lodestar.