For the past half-decade or more, financial advisors have been shifting from commissions to fees as they seek steadier revenue flows, pursue greater flexibility with client accounts and offer more planning services. And yet, for the industry overall, fees still account for just over one-third of revenues, or 35 percent, up from 25 percent three years ago, according to a 2008 survey conducted in October for Registered Rep. and Fairfield Iowa-based independent b/d Cambridge Investment Research. RIA firms, not surprisingly, are the most fee-oriented by far, with fees accounting for 73 percent of revenues, up from 57 percent three years ago. By comparison, wirehouse advisors get just 45 percent of revenues from fees, up from 34 percent three years ago. Insurance b/d advisors are the least fee-happy, with 12 percent of revenues coming from fees, up from five percent three years ago. While most advisors (62 percent) charge around 1 percent on assets under management — a number that remains largely unchanged from 2006 — almost 23 percent of respondents charged 2 percent in 2008. Wonder what magic those reps have up their sleeves.
Profiles and fact sheets of independent broker/dealers and registered investment advisories (RIAs), an outsourcing guide, listings of compliance/regulatory consultants, securities lawyers, recruiters, back-office technology offerings and asset management platform providers.
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