Financial Planners & Investment Advisers Industry Profile

About 35,000 US companies with combined annual revenue of about $200 billion provide financial planning and investment advice to individuals and businesses. Large companies include Ameriprise Financial, Charles Schwab, and units of diversified financial services companies such as Morgan Stanley. The industry is concentrated: the 50 largest companies account for about half of revenue.

Globally, companies providing financial planning and investment advice have assets under management exceeding $50 trillion, according to the Boston Consulting Group. Top global firms include the asset management divisions of Dutch firm ING and French bank BNP Paribas.

COMPETITIVE LANDSCAPE

Demand is driven by consumer income and wealth and demographics. The profitability of individual firms depends largely on effective marketing. Large companies have some advantages in providing expertise in a wider range of investment options, and they may be able to charge lower fees. Small companies can compete successfully by providing better service and advice.

PRODUCTS, OPERATIONS & TECHNOLOGY

The relationships between financial planners, investment advisers, and other professionals in the financial services industry are complex, and their roles often overlap. Financial planners help customers put together a plan to manage their financial resources; investment advisers suggest specific investments. A third of industry revenue for both investment advisers and financial planners comes from providing services to individuals. Financial planners help individuals form a plan that may include debt, asset, college, retirement, estate and tax planning, and may periodically check with the client to ...