Wealth Management

The wealth management industry is constantly in flux as a result of bull and bear markets, government legislation, evolving business trends, globalization, and many other factors. One major trend is increasing consolidation in the wealth management industry, as large firms try to become even more profitable. This has resulted in an environment that is becoming dominated by a small number of large companies. “The top-five wealth management firms control 57 percent of broker/dealer (B/D) assets under management (AUM) and 32 percent of B/D advisors, while the top-25 B/D firms and their various affiliates control 92 percent of AUM and 79 percent of advisors,” according to Cerulli Associates, a finance market intelligence firm. Other noteworthy trends worth watching include technology and the increasing prominence of social media, the growth of automated robo advisors that manage investments by computers, the aging of the wealth advisor workforce, and changing customer expectations.