JERSEY CITY, N.J., February 5, 2013 — Pershing LLC, a BNY Mellon company, today announced the release of its Inaugural Study of Advisory Success, an independent study that defines what success means for advisors in today's environment. Based on findings from a survey of 357 advisors, the study also looks ahead to anticipate what will lead the next generation of advisors to flourish in a changing industry.
Every year for the next 10 years, 12,000 to 16,000 advisors in all segments of financial advice will retire1. In order to keep up with the demand the industry will need to cumulatively add 237,000 new financial professionals. Younger advisors represent the future of the industry at a time when Americans need more financial advice than ever.
"It is evident that the financial advice industry will face a talent shortage in the coming years," said Kim Dellarocca, director of segment marketing and practice management at Pershing. "Each day, the industry sees young advisors exit the industry and never return. Firms need to think about how to recruit and retain younger advisors by understanding their drivers and motivations— and convey to them that being an advisor is a rewarding and fulfilling career."
Younger advisors view success very differently from their older counterparts. It is important to understand these differences in mindset, preferences and behavior. Only by doing so can firms attract and retain talent for the future and build a succession strategy that ensures future viability.
According to the study, firms should look to address the following key differences among older and younger advisors over the next several years:
Recruiting younger advisors is only one element of the challenge. Maintaining younger advisors interest in the profession also proves to be a constant hurdle for firms to overcome. Pershing's Inaugural Study of Advisory Success offers actionable insights to help firms and advisors better plan for and thrive in the years ahead.
To obtain a copy of Pershing's Inaugural Study of Advisory Success, please visit:
www.pershing.com/advisory-success. You can also follow us on Twitter and hear more about the findings at #advisorysuccess.
Pershing LLC (member FINRA/NYSE/SIPC) is a leading global provider of financial business solutions to more than 1,500 institutional and retail financial organizations and independent registered investment advisors who collectively represent approximately 5.5 million active investor accounts. Located in 23 offices worldwide, Pershing and its affiliates are committed to delivering dependable operational support, robust trading services, flexible technology, an expansive array of investment solutions, practice management support and service excellence. Pershing is a member of every major U.S. securities exchange and its international affiliates are members of the Deutsche Borse, Australian Stock Exchange, Irish Stock Exchange, London Stock Exchange and Toronto Stock Exchange. Pershing LLC is a BNY Mellon company. Additional information is available at www.pershing.com.
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 36 countries and more than 100 markets. As of December 31, 2012, BNY Mellon had $26.7 trillion in assets under custody and administration, and $1.4 trillion in assets under management. Whether clients are looking to create trade, hold, manage, service, distribute or restructure investments, BNY Mellon can act as a single point of contact for their investment needs. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com, or follow us on Twitter @BNYMellon.
1 FA Insight, The 2011 FA Insight Study of Advisory Firms: People and Pay, 2011.