An increasing share of advisors are using subscription based models for financial planning advice, according to a new report.
Last year 85% of invoices issued by advisors were for subscription advice services, up from 83% in the previous year, the analysis of 461,000 transactions by AdvicePay discovered for its third annual Fee-for-Service Industry Trend Report.
The trend towards subscription models comes alongside a change in consumer behavior with most fees (53.4%) paid using credit or debit cards in 2024 and 45.9% paid by ACH transactions.
The report also found that, rather than replacing AUM based fees, subscriptions are an additional revenue stream for advisors and one that provides a more predictable and stable income to hedge against volatility in market conditions which impact AUM based fees.
And the fees charged on a fee-for-service basis have also increased. In 2024, advisors raised their average monthly subscription fees to $278, up 4.9% from $265 in 2023, while quarterly subscriptions saw a 1.4% increase, and one-time fees grew by 2.9%.
Adoption of the fee-for-service model is no longer a niche trend, it’s a strategic necessity for broker-dealers and RIAs aiming to remain resilient and competitive in recruitment and retention of both advisors and clients,” said Alan Moore, Co-Founder and CEO of AdvicePay. “The sustained growth across key metrics signals that subscription-based planning is becoming a core part of financial advisory firms’ revenue strategies. It allows firms to expand their client base, offer flexible pricing, and mitigate the risk of market volatility.”
The firm has processed over $838 million in financial planning fees since its public launch in 2018, firmly establishing fee-for-service financial planning as a mainstream and essential business model, which has is reinforced by a recent report from Cerulli Associates, which projects more than three-quarters of financial advisors will operate under a fee-based compensation model by 2026.
A complaint by the Social Security Administration's chief data officer alleges numbers, names, and other sensitive information were handled in a way that creates "enormous vulnerabilities."
The New Orleans-based 5th Circuit has sided the industry groups arguing the commission's short-selling rules exceeded its authority.
The deal will see the global alts giant snap up the fintech firm, which has struggled to gain traction among advisors over the years, for up to $200 million
Elsewhere, Osaic extended its reach in Knoxville with a former TrustFirst team, while Raymond James scored another win in the war for Commonwealth advisors.
Meanwhile, EP Wealth extended its Southwestern presence with a $370 million women-led firm in Santa Fe, New Mexico.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
