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Industry Landscape
The wealth management industry is experiencing significant transformation, driven by technology, evolving client expectations, and a shift towards holistic financial planning. Digital platforms, AI, and integrated services are becoming crucial. Consolidation among firms and the rise of independent RIAs offering specialized services, particularly for complex assets and tax planning, characterize the current landscape. There's a strong demand for personalized advice combined with technological efficiency.
Total Assets Under Management (AUM)
Assets Under Management (AUM) in United States
~Approximately $120 trillion (US Wealth Management AUM)
(10-12% CAGR)
- Growth driven by market appreciation.
- Inflows from HNW and UHNW individuals.
- Increasing demand for comprehensive financial planning.
Total Addressable Market
Approximately $120 trillion
Market Growth Stage
Pace of Market Growth
Emerging Technologies
Generative AI & Large Language Models (LLMs)
Generative AI and LLMs will transform client interaction, content generation for financial planning, and automate complex data analysis, enabling highly personalized advice and operational efficiency.
Blockchain & Tokenized Assets
Blockchain technology will enable more transparent, secure, and efficient management of alternative investments and complex illiquid assets, potentially revolutionizing asset ownership and transfer.
Hyper-Personalization Platforms
Advanced data analytics and AI will enable hyper-personalized financial advice, product recommendations, and real-time client engagement by predicting client needs and behaviors.
Impactful Policy Frameworks
SEC Marketing Rule (2020/2021)
The SEC's new Marketing Rule (Investment Adviser Marketing Rule, effective May 4, 2021) permits RIAs to use testimonials, endorsements, and to provide performance information in new ways, while requiring specific disclosures and oversight.
This rule allows Compound Planning to leverage client testimonials and performance data more freely in their marketing efforts, potentially boosting client acquisition for both individual clients and advisor recruitment.
FINRA Proposal on Complex Products and Options (2023)
FINRA proposed amendments to Rule 2111 (Suitability) to address concerns related to recommendations of complex products and options, aiming to ensure firms have reasonable diligence and supervisory systems in place.
This proposal will likely increase compliance burdens and due diligence requirements for Compound Planning, especially given their focus on alternative investments and stock options for clients.
Department of Labor's Fiduciary Rule (Proposed/Under Review 2023/2024)
The DOL is proposing to update the definition of an investment advice fiduciary under ERISA, potentially expanding the scope of investment professionals subject to fiduciary duties when advising retirement plans and IRA rollovers.
If enacted, this rule could broaden Compound Planning's fiduciary responsibilities, requiring stricter adherence to best interest standards for retirement advice and potentially influencing their service model for such clients.
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