RIA firms optimistic about hiring and asset growth

Study: Biggest concerns are cybersecurity, a possible market downturn and regulation

Advisory firm executives plan to increase headcount over the next 12 months, and 57% of retail-oriented registered investment advisers expect assets under management to increase over the next three years, according to a survey by the Investment Adviser Association and Cerulli Associates.

The organizations’ annual executive outlook survey found that nearly two-thirds of respondents (64.7%) planned to increase headcount by up to 10%, while 15% said they planned to increase their staffs by more than 10%.

The survey also highlighted key areas troubling RIA executives.

When asked to rate their level of concern regarding external factors over the next two years, participating executives said they were moderately or very concerned about cybersecurity (97%), a potentially significant market crisis (95%), the domestic regulatory environment (85%), fee compression (83%), the country’s international relations (74%), non-U.S. regulatory environments (58%), tax reform (43%), globalization (43%) and Brexit (35%).

When asked which technology investments over the next 12 months would be a moderate or high priority, survey participants identified improving cybersecurity (91%), updating older technology (83%), implementing regulatory/reporting requirements (77%) and improving data management/analytics (77%).