Top Ten Broker/Dealers Control 58% of Retail Assets

With 123,000 FAs

Date:

Author: Funds Society, Miami

One-fifth of the top-25 B/D firms by AUM as of 2012 have either been acquired or merged, reflecting the consolidation that has been characteristic of the B/D marketplace as firms are pressured to increase scale to remain competitive and maximize profit margins

The size and scale these firms offer make them attractive to financial advisors and to asset managers seeking shelf space

Scale, however, is not a panacea for the many challenges that face B/D firms, the report added

“A growing number of advisors are demonstrating dissatisfaction with the bureaucracy associated with working for a large financial institution and are choosing alternative affiliation options, particularly hybrid RIA and independent RIA affiliation,” said Michael Rose, director