More advisory firms using flat fees, survey finds

Advyzon says those firms also more likely to have multiple fee schedules.

More than 26% of advisory firms surveyed by technology firm Advyzon now use flat dollar fees.

Chicago-based Advyzon, which provides a range of technology to registered investment advisory firms, said that among the 1,000 of its users it surveyed, flat fees are more popular with firms managing more than $100 million in assets. Those firms also are more likely to have multiple fee schedules than other firms (89% versus 81%).

[More: Asset-based fee models are ‘lazy’ — and flawed]

Quarterly billing remains the industry standard (74% of firms surveyed), based on beginning or ending balances, which “creates potential for big revenue fluctuations in volatile markets,” the company said in a release.

Other firms are using monthly billing (21%) and a growing number (16%) are calculating their fee based on average daily balances.

[More: Rethinking advisory fees means figuring out value]