RIA assets skyrocket 47%

RIA firms racked up $1.4 trillion in assets this year, compared to $950 billion in assets in 2005.
OCT 29, 2007
Assets managed by registered investment advisers have grown by 47% over the past two years, according to a new report released by Cerulli Associates, a Boston-based research firm. The report, entitled "Registered Investment Advisors: Evaluating Opportunities in a Maturing Marketplace," found that there are $1.4 trillion in assets and 14,451 RIA firms this year, compared to $950 billion in assets and 11,741 firms in 2005. The report said that the growth in the RIA space is being driven by growth of existing firms, new entrants to the market, and the growth of capital. Citing compliance as their greatest concern, 47% of RIAs said that they believe that compliance is the greatest challenge that is currently facing them currently. The challenge of meeting compliance standards is especially pronounced for dually registered advisers, the report said. "The industry is experiencing the entrance of new firms, growth of the capital markets and retail clients that demand unbiased financial advice," said Bing Waldert, associate director at Cerulli Associates. "The financial services industry as a whole is maturing," he said.

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