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A recent report found that the registered investment advisor industry will see more advisers overseeing fewer funds for fewer clients in 2022 than in the previous year.

The RIA Space has a record 15,114 advisors registered. Securities and Exchange Commission Last year, it increased by 2.1% from 14,806 in 2021 and by 8.9% from 13,880 in 2020. Investment Advisers Association and the National Regulatory Service said in a new report jointly published by the two organizations and based primarily on Form ADV data.

Meanwhile, the number of employees in the RIA industry will increase from 928,505 in 2021 to 971,487 in 2022.

But assets under management in 2022 stood at $114.1 trillion, down 11.1% from $128.4 trillion, the first decline since 2008, according to the IAA and NRS.

Additionally, the number of customers served by RIA will drop from 64.7 million in 2021 to 61.9 million in 2022, settling just above RIA’s 60.8 million customers in 2020.

Nonetheless, 2022 wealth is still well above the previous year, with RIA wealth at $110 trillion in 2020 and $97.2 trillion in 2019, according to the IAA and NRS.

According to the report, the RIA sector remains a “small business industry.” Last year, 91.7% of RIAs had less than 100 employees, 88.5% had less than $5 billion in assets under management, and 70.2% had less than $1 billion in assets under management. .

Meanwhile, big players continue to control a much larger pie, with firms with more than $5 billion in assets under management controlling 90.6% of industry assets, the IAA and NRS said.

While those companies saw the steepest declines in AUM in 2022, the report found that those with less than $100 million in net AUM saw the biggest gains.



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