Career Center Powered by GreatInsuranceJobs.com
Advisors dually registered as RIAs and B-D affiliates can sell both fee-based advice and commission-based products, according to Cerulli, Boston.
Dually registered advisors have been part of the fastest growing channel during the past few years, and their channel should continue to grow faster than any other for at least the next 4 years, Cerulli predicts.
The dually registered advisors could increase their share of market assets to 10.5% in 2012, from 8.9% this year, Cerulli says.
Just half of retail B-Ds and RIAs work with retail clients, Cerulli says.
Cerulli also is predicting that the number of retail financial advisors will remain “relatively” stable over the next 4 years, with only modest growth.
The total percentage of advisors employed in the independent channel may increase between 1.5% and 2% each year between 2009 and 2012, with about half of all advisors doing business in 2012 being independent advisors, Cerulli says.
“However, with the increases projected in the absolute number of advisors joining the dually registered channel, there is likely to be an erosion in the quality advisors in the channel,” Cerulli says.. “While many entrants have been successful advisors founding their own RIA and adding an IBD affiliation, increasingly, entrants are less successful advisors joining existing practices. Though this may still increase the absolute attractiveness of the channel, by enabling firms to accumulate assets at a greater rate, there would necessarily be some erosion in the relative assets per advisor.”