FINRA report shows number of brokers up for first time in years

Financial Planners

The number of people entering the securities industry will increase for the first time in years in 2022. This is due to wealth managers joining both pure broker-dealer firms and hybrid organizations with advisory departments.

According to financial industry regulators, Latest Industry Snapshot, was released on Thursday. The number of registered agents in brokerage firms will increase to 620,882 by 2022. The previous year was 612,435. That’s just a 1% increase, and while the 2022 total is below the 629,475 registered personnel recorded in 2018, it marks the first time the numbers have risen in at least five years.

There was an increase in both the number of firms registered exclusively with FINRA, the broker-dealer industry self-regulatory body, and the number of so-called hybrid firms with advisory units that are also registered with the Securities and Exchange Commission. . The number of pure brokerages increased from 304,867 to 308,565 from 2021 to 2022, while the number of hybrids increased from 307,590 to 312,317 in two years.

Meanwhile, the total number of companies registered with FINRA continues to decline, suggesting that consolidation remains an industry trend. That number will be 3,378 in 2022, down from 3,394 the previous year.

In contrast, the number of SEC-registered pure advisory firms has steadily increased, suggesting that fee-only and similar business models continue to be popular among wealth managers. . That figure has increased from 35,063 in 2021 to 35,399 in 2022.

“The RIA model continues to gain momentum, especially among younger advisors,” said Mark Elzweig, president of the Mark Elzweig Company, a financial advisor consultancy.

These are just a few points from the FINRA report. There are several others.

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