The Financial Industry Regulatory Authority (FINRA) has unveiled its 2024 Industry Snapshot, a comprehensive statistical report detailing the current state of registered representatives, brokerage firms, and market activity under its oversight. This annual report aims to enhance public understanding and confidence in the activities and supervision of FINRA member firms.
Jonathan Sokobin, FINRA's Executive Vice President and Chief Economist, emphasized the importance of sharing regulatory data to foster transparency and trust. The 2024 snapshot includes new topics such as changes in registration types for registered representatives, firm size dynamics, and account owner types.
Key Findings from the 2024 FINRA Industry Snapshot, as reported byThinkAdvisor:
Decline in Broker-Dealer Firms
The number of broker-dealer firms registered with FINRA continues to decline. In 2023, there were 3,298 firms, down 2.4 percent from 3,378 in 2022. This is a significant drop compared to 3,517 firms in 2019.
Increase in Registered Representatives
The number of registered representatives rose to 628,392 in 2023, a 1.2 percent increase from 620,873 in 2022. This trend suggests a growing workforce within the industry despite the declining number of firms.
Rise in Dually Registered Representatives
A notable trend in 2023 is the increase in dually registered representatives. Of the total registered reps, 308,795 were solely with broker-dealers, while 319,597 were dually registered with broker-dealers and Registered Investment Advisors (RIAs).
More Firms Exiting the Industry
In 2023, the industry saw a net exit of 193 firms, compared to 132 in 2022. This indicates a higher rate of firms leaving the industry than entering, continuing a trend of consolidation.
Concentration of Firms in Six States
The majority of brokerage firms are concentrated in six states. New York leads with 1,392 firms, followed by California (859), Florida (760), Texas (614), Illinois (598), and Massachusetts (415).
These findings provide a detailed overview of the current landscape of the broker-dealer industry, highlighting trends in firm dynamics, registration types, and geographic concentration.
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