There is good news in the marketplace. Over the past two years, compensation for advisors has increased by double digits.
Pay for chief executives or presidents of advisory firms has risen 18% since 2010. The Financial Planning Association’s (FPA) latest study also shows combined compensation for three different levels of financial planners rose 12% over the same period.
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Industry incomes and profits are at record levels. This shows firms have recovered from the crisis and also signals optimism about the future.
The rebound in US equities markets had significant impact on the growth. It has increased assets under management simply from the increase in market values.
Demand is also up for experienced and talented advisors. Even advisors who are getting close to retirement are being offered unprecedented transition packages to change firms.
The FPA study echoes the findings of the Investment News/Moss Adams Advisor Compensation and Staffing Study in 2011.
Strong demand for experienced and talented
financial advisors is expected to continue pushing compensation higher over the coming years.