IAA Survey Reveals Industry Reaching Record Highs in Number of Firms and Clients

Record Highs for RIA Industry in 2023: Survey Results

The RIA industry is booming, with record highs in the number of investment advisors, firms, and clients in 2023. According to a survey co-run by the Investment Adviser Association, assets managed by SEC-registered advisors saw a significant increase of 12.6% from the previous year, matching highs from 2021. The number of advisors also grew by nearly 2%, showcasing the industry’s growth and resilience.

Last year, the number of SEC-registered firms reached a record high of 15,396, with an increase of 282 firms. The industry is seeing growth in both the number of advisors and firms, with more than 1 million non-clerical employees working in the RIA space for the first time. While most advisors and firms are on the smaller end of the spectrum, with 88% of advisors managing less than $5 billion in AUM, more than 92% of client assets are managed by firms with over $5 billion in AUM.

Firms with $100 billion+ AUM saw the most robust growth over the past decade, with strong employment growth at these firms. On the other hand, firms under $100 million saw a decline, with many either moving into larger categories or terminating their SEC registration altogether. Despite this, 1,114 new advisory firms formed in 2023, showcasing the continued interest and growth in the RIA industry.

The total number of clients serviced by registered firms jumped 3.5% to 64.1 million, with a record high of 56.7 million asset management clients in 2023. The industry is also seeing a shift towards digital platforms for non-asset management services, with more advisors using multiple websites and social media platforms to communicate with clients. LinkedIn remains the most-used platform, but advisors are increasingly turning to Facebook, YouTube, and Instagram to connect with clients.

Overall, the RIA industry is thriving, with record highs in various metrics and a growing focus on digital communication and client services. The industry’s growth and adaptability are evident, making it an exciting time to be a part of the RIA space.

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