The Financial Industry Regulatory Authority ("FINRA") released its 2020 industry snapshot, which provides a report on the number of broker-dealers and FINRA-registered representatives. This report showed a decrease in the number of broker-dealers and registered representatives in 2019, a trend that has been on-going for several years.

In 2019, the number of broker-dealers dropped to 3,517 from 3,607 in 2018, a 2.5% decline. According to FINRA's industry snapshot, 2019 was the fifth consecutive year of broker-dealer decreases. The number of broker-dealers has decreased 10.8% since 2015.

Likewise, the number of FINRA-registered representatives also fell in 2019. The number of FINRA-registered representatives at the end of 2019 was 624,674, a 0.7% decrease from the 629,529 in 2018. The FINRA industry snapshot showed that the number of registered representatives has decreased every year since 2015. In total, the number of registered representatives dropped 2.3% from 2015 to 2019.

The decline in registered reps appeared to have a similar impact on firms of all sizes. The percentage of registered representatives at small, medium and large firms has remained virtually unchanged over the last five years. In 2015, 81% of registered reps were with large firms, 11% with small firms, and 8% at mid-size firms. In 2019, 82% of registered reps were with large firms, 10% with small firms, and 8% at mid-size firms.

Financial Advisor Transitions helps advisors weigh the advantages and disadvantages of their transition options, and guides them as they transition from one firm to another. Call us today for a free consultation.