The Financial Services Institute says its members contributed $48 billion to the U.S. economy last year and created about 482,000 jobs.
The group of independent advisors and broker-dealers, which released a report Monday on its economic impact, says its roughly 167,000 members also help generate income and business activities that lead to $6.8 billion in taxes.
“We have always known that our members make tremendous contributions to the economy, not only at the national level but also in the state and local economies in which they serve,” said FSI President & CEO Dale Brown, in a statement.
“With this study we have now quantified those contributions and shown that the impact of independent financial services firms and independent advisors extends well beyond the financial services industry,” added Brown, noting that FSI represents about 100 independent financial firms.
The research, which was conducted with Oxford Economics, found that the group’s members generate the greatest level of economic activity as a share of the overall financial-services industry in small- and mid-sized states. For example, FSI members represent over 40% of the industry’s overall economic impact in Mississippi ($344 million), 36% in Maine ($232 million) and 30% in Kansas ($953 million).
In the large states, the independent reps and their firms contribute $5.4 billion to the annual output of California, $4.3 billion in New York and $2.9 billion in Texas.
Beyond the financial-services industry, FSI members also help produce jobs and economic output in professional and business services ($4.8 billion); trade, transportation and utilities ($4.2 billion); and education and health services ($2.8 billion).
The research also finds that one of every six independent financial advisors is a veteran, and that the average yearly salary of indie advisors is nearly $111,000. Plus, indie reps account for close to 65% of all advisors in the country.
Of the over 480,000 jobs created by indie reps and firms, advisors and staff have about 160,000 positions, with the remaining 320,000 posts being held by outside service firms and other businesses.
In addition, FSI members support communities by charitable giving and support of groups like the American Cancer Society, American Heart Association and United Way.
— Related on ThinkAdvisor: