The race to retain financial advisors is intensifying, with Cerulli Associates projecting that 8.6% of U.S. advisors will switch firms in 2026, placing roughly $3.4 trillion in client assets in play. The Boston-based research firm's new report underscores that broker-dealers must adapt their value proposition to keep pace in one of the most competitive recruiting environments on record.
Advisors are increasingly seeking flexibility, better economics, and alternative client service models. Cerulli argues that broker-dealers need to offer greater autonomy without sacrificing the institutional support that has historically defined the channel. Technology emerges as a key differentiator: 57% of advisors surveyed said technology influenced their decision to join a new broker-dealer in the past three years. Firms with open-architecture platforms and customizable tools are better positioned to attract talent.
“Allowing advisors more discretion in selecting the tools and resources that best support their practices can enhance their sense of control while improving their ability to meet evolving client needs,” said Michael Rose, director and co-head of Cerulli's wealth management practice. “Firms that can provide increased flexibility with institutional support will be better positioned to attract advisors.”
The broker-dealer landscape is consolidating, with the top 25 firms now controlling 94% of all BD assets. Advisors at the five largest firms are the most productive, managing an average of $187 million each as of year-end 2025, compared with $152 million across the top 25. This concentration intensifies competition for top producers.
The shift toward independent models remains robust. Seventy-one percent of advisors told Cerulli they would choose an independent channel if they changed affiliations, with independent RIAs ranking as the most desirable destination. A separate ISS Market Intelligence report found that between 2021 and 2025, retail-focused RIAs attracted 9,525 representatives from other channels, while independent broker-dealers added 5,780. Within the RIA space, about 85% of firms—roughly 35,000—employ five or fewer representatives, creating acquisition opportunities for aggregators.
An aging advisor workforce adds urgency. Cerulli estimates that 35.2% of broker-dealer advisors, managing 41% of the channel's assets, expect to retire within the next decade. This looming succession wave could accelerate client transitions and further reshape the competitive landscape.
Despite the pull toward independence, many advisors in employee channels still value their firm's support. In Cerulli's survey of the wirehouse channel, 89% of advisors cited access to lending products as a top benefit, and 84% highlighted services tailored to high-net-worth clients. Brand strength also plays a critical role in client trust and organic growth.
“A major advantage for advisors in the employee channel is the ability to leverage their B/D's branding, which helps establish trust with clients early on and facilitates marketing efforts to support organic growth,” Rose said. He added that broker-dealers should continue improving resources such as marketing support and HNW services.
As the industry evolves, firms that can blend flexibility with institutional backing are likely to win the war for talent. The data suggests that technology, branding, and specialized client services are no longer optional—they are essential to retaining advisors and capturing a share of the $3.4 trillion in assets in motion.
