Bing Waldert
Wirehouses expected to lose more market sharePosted by RJ and Makay on Jan 20, 2012 |
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Wirehouses have been losing market share since the financial crisis, and according to a new report from Cerulli Associates, the trend may accelerate over the next three years. The entire financial advisory industry stood at less than $11 trillion in 2007. Assets reached 11.2 trillion in 2010. That same time frame saw assets at wirehouses dropping from $5.5 trillion to $4.8 trillion, Cerulli reported.
A relatively small percentage of financial advisors sell 12 or more variable annuity (VA) contracts per year, and those advisors make a substantial majority of total VA sales, according to Cerulli Associates, Inc. A recent annuities and insurance report by the Boston-based research firm found that only 18% of financial advisors annually sell 12 or more VA contracts, and that those advisors account for 68% of total annual VA sales.
