FINRA 2022 Industry "Snapshot" Report Reflects Shifts from Brokers to Advisers

In its annual securities industry "snapshot" report, FINRA found that the number of member firms declined every year since 2012, and the number of investment adviser-only firms increased over the same period. The report documents the shift in business from broker-dealers to investment advisers. Among the findings:

• the number of registered representatives declined (from 630,000 in 2017 to 612,000 in 2021);

• the number of FINRA member firms declined every year from 2012 (from 4,289 members in 2012 to 3,394 in 2021);

• over the same time period, the number of investment adviser-only firms increased every year (from 27,131 in 2012 to 31,669 in 2021) and

• more associated persons of FINRA firms are dual registered as broker-dealer investment adviser representatives than are registered solely as broker-dealer personnel.