Wealth Management Trends Shift How Advice is Delivered

Investors should confirm if their advisor acts as a fiduciary or receives compensation for recommending specific financial products.

Updated on Oct. 27, 2026 in Financial Planning

Wealth Management Trends Shift How Advice is Delivered

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Do you feel confident that you understand how your financial advisor is compensated?

Between 2020 and 2025, the landscape for financial advice shifted as the number of large fee-only registered investment advisors (RIAs) grew, yet their overall control of industry assets shrank. This trend reflects significant consolidation favoring firms with broader insurance and brokerage capabilities.

Why it matters

As the wealth management industry consolidates, investors are increasingly encountering models where advisors may recommend products that serve the firm's own financial interests. Understanding how your advisor is compensated is essential for ensuring your financial plan prioritizes your specific long-term goals.

While the number of large fee-only RIAs managing over $5 billion rose from 83 in 2020 to over 120 by 2025, their total industry asset share dropped from 42% to 34%. Meanwhile, roughly 15% of clients remain unsure how their specific provider is compensated for their services.

The details

Industry mergers and acquisitions have increasingly funneled client assets into firms that blend traditional advisory roles with brokerage and insurance services. This shift means that fewer assets are managed by independent, fee-only fiduciaries who are legally obligated to act in the client's best interest. Consequently, investors may be working with firms where the compensation structure allows for product recommendations that align with firm-wide interests rather than purely client outcomes.

The count of large fee-only RIAs and their asset share were measured between 2020 and 2025.
The share of investors willing to pay for advice doubled beginning in 2009.

Money Landscape

The wealth management sector is currently experiencing a wave of consolidation that favors firms offering diverse, multi-line financial products. This trend marks a departure from the previous decade of growth for pure-play independent advisory models.

Confirm your advisor's compensation model to ensure you are receiving fiduciary advice rather than product-based sales pitches. Because 15% of clients are unclear about how their provider is paid, reviewing your service agreement or asking your advisor for a Form ADV filing is a vital step.

The takeaway

The gap between advisor compensation models is widening as industry giants acquire smaller independent firms. Ask your current advisor if they are a fiduciary and whether they receive commissions for the specific products they recommend for your portfolio.