Independent advisory channels are poised to overtake wirehouses in combined asset market share in the next five years, according to Cerulli Associates.

 

"Multiple factors have contributed to the historical and expected growth of independent channels," Kenton Shirk, associate director at Cerulli, said in a statement. "More than two-thirds of advisors indicate they would prefer the independent broker/dealer, registered investment advisor, or dually registered models if they decided to leave their current firms."

 

Projected market share gains in the RIA and dually registered channels will likely come at the expense of wirehouses and independent broker-dealers, which Cerulli 's "Advisor Metrics 2014: Capitalizing on Transitions and Consolidation" report projects will lose significant asset market share over the next five years.

 

Nonetheless, RIAs still face an uphill battle to overtake wirehouses - the Aite Group estimates wirehouses have nearly three times as many assets - over $6.2 trillion - as RIAs, who have around $2.3 trillion.

 

However, Shirk noted, "Technology advances have minimized the differences in platform capabilities across channels."

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