Cerulli reports flat advisor headcount growth

Hannah Bietz
Cerulli reports flat advisor headcount growth
Cerulli reports flat advisor headcount growth

Cerulli Associates reports that financial advisor headcount has grown just 0.2% over the last decade to 283,137 as of the end of 2023. The wirehouse channel is losing headcount at the fastest rate, although it controls over one-third of industry assets. As of 2023, the wirehouses had a 15% market share of advisor headcount, but forecasts suggest that this will decrease to 14% over the next five years.

The independent broker/dealer channel had the highest headcount market share, at 16.5%, and the highest asset share, at 12.7%. The independent RIA channel, which excludes hybrid RIAs, had about a 16% headcount market share and saw the largest gain in asset market share over the past decade, rising from 12% to 16% in 2023. National and regional broker/dealers also held about a 16% market share in both headcount and assets, while hybrid RIAs accounted for 13% of headcount and 11% of asset share.

Insurance broker/dealers had the lowest asset market share, at just 3%, but a headcount of nearly 14%.

Flat headcount growth across channels

The retail bank broker/dealer channel accounted for 7% of the assets and 9% of advisor headcount.

Across all channels, research indicates $31.3 trillion in retail advisor-managed assets as of 2023. Over two-thirds (67%) of those assets are managed by practices with more than $500 million in assets under management. About half of these practices are interested in an acquisition.

Estimates suggest that approximately 105,887 advisors plan to retire over the next decade, accounting for about 37% of the current headcount and 41% of assets. Yet, 26% of those advisors who plan to retire are uncertain about their retirement plans, a figure that rises to 30% within the independent RIA channel. These advisors face various challenges related to developing a business succession plan necessary for retirement, including finding a qualified buyer for their practice (86%), structuring deal terms (63%), and accurately valuing their practice (53%),” the report noted.

Hannah is a news contributor to SelfEmployed. She writes on current events, trending topics, and tips for our entrepreneurial audience.