Shifting Financial Advice Models Could Affect Your Costs

As hybrid advisory firms grow, verify whether your manager receives commissions that may affect your portfolio's performance.

Updated on Oct. 21, 2026 in Financial Planning

Isometric editorial illustration showing a large rectangular weight balanced on thin pillars, representing shifting advisory structures in finance. — Fee-only financial advisors are losing market share to hybrid firms, leading to complex commission structures that may impact investor portfolio costs. AI Illustration. Upload story photo >

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Should you prioritize hiring a financial advisor who is exclusively a fiduciary?

Research from Cerulli Associates shows that fee-only registered investment advisors (RIAs) are losing market share to hybrid and insurance-licensed firms. Investors who prioritize fiduciary status report higher satisfaction levels with their financial guidance.

Why it matters

The shift toward hybrid models can complicate how investors identify potential conflicts of interest, as firms may integrate commission-based products alongside fee-based accounts. Understanding these structures is crucial for households as they evaluate the alignment of their advisor's incentives with their own financial goals.

Fee-only RIA assets fell to 34% of the market by year-end 2025, down from 42% in 2020. Conversely, 73% of investors who require their advisor to act in their best interest are satisfied, compared to 42% for those who believe their advisor acts in their best interest only some of the time.

The players

Cerulli Associates

A research firm that provides data and analytics on the financial services and asset management industry.

Credent Wealth Management

An Indiana-based firm providing wealth management services to households.

The details

Firms often lose their fee-only status through mergers or by acquiring insurance and broker-dealer capabilities, which allows them to offer a broader range of commission-based products. Consolidators are driving this trend, handling 53% of RIA deals through September 2026. As firms target growth, some convert existing fee-only assets into products that generate commissions, potentially altering the cost structure for existing clients.

2020: Fee-only firms held 42% of total assets.
Year-end 2025: Fee-only firms held 34% of assets.
September 2026: Consolidators handled 53% of all RIA deals.

Money Landscape

The decline in fee-only advisor market share marks a departure from a decade of growth in fiduciary-only models. This shift toward hybrid firms complicates the clarity of incentive structures established under the SEC's Regulation Best Interest.

If your advisor's firm merges or changes its business model, review your advisory agreement to see if commission-based products are being introduced. Talk to a tax or financial professional to ensure that any new product recommendations remain aligned with your long-term budget and goals.

The takeaway

The rise of hybrid advisory firms means households should explicitly ask if their advisor is currently receiving commissions on any recommended products. Review your annual account statements to confirm that total advisory costs remain consistent with your original agreement.