According to a recent report generated by Cerulli Associates Inc. (“Cerulli”), the number of financial advisers and brokers in the financial sector will drastically diminish by 2017 as a result of the security industry’s inability to attract new advisers, while large numbers of aging advisers retire. It is reported that by 2017, the industry will lose approximately 25,000 advisers, mostly from wire-houses, independent broker-dealers and banks, due to retirement as nearly 10% of advisers are over the age of 65. In light of the forecasted large number of retirements, the financial industry must focus on accumulating new advisers. Sean Daly, an analyst at Cerulli, stated to the media that many investment firms are attempting to improve and strengthen training programs and provide various incentives to new advisers, including offering scholarships to Certified Financial Planning programs and providing incentives for teams to add new recruits. It will be interesting to see how firms decide to incentivize new advisers and whether investment firms will begin to target various college for recruits.
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