According to AdvisorHub, 2021 has been dubbed as "A Year in Transition" for the wealth management industry. As wirehouses continue to focus on increasing assets and profitability, the industry has seen a significant migration away from large institutions.
A recent study by a consulting firm revealed that the majority of breakaway advisors who left their firms went on to retain 85 percent of their client assets. As a result, transitions arguably have become a low-risk, high-reward proposition.
Additionally, wirehouses are struggling to diversify their ranks. Despite public efforts to address the gender gap in the wealth management industry, wirehouses continue to lag in recruiting and in retaining women. By comparison, RIAs and independent broker-dealers saw a net gain of 1,500 female advisors.
Finally, wealth management had a strong year despite constant uncertainty and volatility, suggesting there was room enough for everyone, according to AdvisorHub.
Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.
