Advisory Firms to Experience Continued Rapid Growth; Need to Develop Human Capital Greater Now Than Ever Before, Says FPA Study

Advisory Firms to Experience Continued Rapid Growth; Need to Develop Human Capital Greater Now Than Ever Before, Says FPA Study: "Advisory Firms to Experience Continued Rapid Growth; Need to Develop Human Capital Greater Now Than Ever Before, Says FPA Study


DENVER, Sept. 19 /PRNewswire-FirstCall/ -- The financial planning
profession has and will continue to experience rapid growth, according to the
2005 FPA Compensation and Staffing Study, sponsored by SEI Advisor Network and
produced by Moss Adams LLP.
The typical financial planning firm has grown from 1.5 employees,
including owners/principals in 2001 to 4.5 employees in 2005 and revenues have
grown from $631,000 in 2001 to more than $1 million in 2005. Moreover, the
2005 FPA Compensation and Staffing Study suggests continued -- if not rapid --
growth in the size of advisory practices. 'Many of these same firms are
expected to get to the critical mass threshold in the not too distant future,
with more than $5 million in annual revenue and a staff of 20 plus,' according
to the study. 'One driver of this is that as advisers evolve from the solo
model and begin adding other professionals, their client, revenue and staff
growth becomes exponential.'
'This year's study shows how advisory practices are changing with the
ever-evolving financial services industry,' said Elizabeth W. Jetton, CFP(R),
chair of FPA. 'One of FPA's priorities is career development and growing new
planners. This is also one of the biggest opportunities for growing the
profession, according to this year's study.'
And Rebecca Pomering, principal of Moss Adams LLP, said: 'The ability to
recrui"