The wirehouse asset management market continues to lose advisors to the RIA sector and could lose as much as seven percent market share over the next three years, according to Cerulli Associates.
Bing Waldert, director at Cerulli Associates, said the firm's research indicates wirehouses are seeking scaled down but more productive advisor teams as a result of the trend. As a consequence, wirehouses have been moving away from mid-tier advisors and mass-market clients.
Merger activity among large wirehouse firms has also caused advisors to move to the RIA business, according to Cerulli. "Any time merger takes place, a number of integrations arise, whether it's physically combining offices, or integrating operating platforms and synching technology," said Tyler Cloherty, senior analyst for Cerulli.
According to Cerulli, the nation's four biggest wirehouses have seen their market share fall to 41 percent since the end of 2007, down from nearly 50 percent prior to the recession.
"The strong growth in the registered investment advisor (RIA) channel has caused a shift in focus from wirehouses to RIAs," Cerulli said.
Boston-based Cerulli Associates provides financial institutions with guidance in strategic positioning and new business development.
-Jim McConville