The Securities Industry Association reports that U.S. brokers saw double digit drops in their commissions, fees, and earnings in 2002, for the second consecutive year.

In 2002, average gross commissions and fees decreased 10.6% from 2001’s $400,538 to $357,890; 2000’s figure was $485,478. (All amounts in U.S. dollars).

Average total earnings fell 8.3% from 2001’s $164,393 to $150,828 in 2002; 2000’s figure was $199,804.

“It was a difficult year for investors and registered representatives alike,” said Steve Carlson, SIA vice president and director of surveys. “While the drops in income were not as steep as the year before, the bear market’s impact was still felt.”

The average value of an active customer account also decreased 15.2%, from $127,018 in 2001 to $107,663 in 2002. Registered reps serviced an average of 538 active accounts in 2002, down slightly from 2001’s 542.

Average value of customer assets per RR decreased from $66,367,593 in 2001 to $57,898,675 in 2002.

RR turnover and length of service increased slightly over the prior year. The average professional has been in the business for 12.1 years, and with their firm for 8.7 years. Approximately one out of every five RRs (20.8%) left their firm during 2002.

Fee-based products now account for 28.4% of an average RR’s commission and fees. This represents a slight increase from 2001’s 26.1%. “The trend of clients to choose a fee-based relationship with their registered representative continues as firms emphasize a long-term financial planning relationship with clients beyond providing transaction services,” said Carlson.

SIA also reports: the average and median payout rates in 2002 were 38.1% and 36.7%, respectively.

As well, 13.6% of the RRs employed by responding firms were female.

The survey’s results are based on responses from 35 member-firms, which collectively employed more than 51,000 RRs and generated almost $18 billion in gross production during 2002. These firms had 3,089 branch managers and operated 3,837 branches.