Fee-Only RIAs Grow in Number but Lose Asset Share

While the total count of large fee-only investment firms has climbed since 2020, their grip on industry assets is slipping.

Updated on Oct. 27, 2026 in Financial Planning

Isometric editorial illustration featuring geometric bronze tokens on a minimalist desk, symbolizing shifting financial assets. — The number of large fee-only RIAs has grown to over 120 since 2020, even as their share of industry assets dropped from 42% to 34%. AI Illustration. Upload story photo >

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Between 2020 and 2025, the number of fee-only RIAs managing over $5 billion rose from 83 to over 120. During that same period, the share of industry assets held by these fee-only firms declined from 42% to 34%.

Why it matters

Market consolidation has pushed wealth toward larger firms that offer broader insurance and brokerage capabilities. This shift complicates the landscape for investors trying to identify the compensation models behind their financial advice.

Fee-only RIAs saw their industry asset share drop by 8 percentage points between 2020 and 2025, while firms with insurance capabilities gained 7 percentage points. Currently, 15% of clients remain unsure how their financial provider is compensated.

The details

Industry mergers have fueled a shift toward integrated service models that combine traditional wealth management with insurance products. While nearly 70% of affluent investors are willing to pay for advice, satisfaction rates vary significantly depending on whether the client is working with a fee-only fiduciary or an advisor whose recommendations may serve firm interests.

2009 marked the doubling of investors willing to pay for financial advice.
2020 to 2025 saw a growth in RIA counts alongside a decline in their total asset share.

Market Dynamics

This trend highlights the ongoing friction between the SEC Regulation Best Interest standards and the evolving business models of major wealth managers. The rise of multi-service firms challenges the traditional separation between advice-only practices and product-affiliated brokerage houses.

Investors should explicitly confirm whether their advisor is a fee-only fiduciary to avoid hidden product-interest conflicts. Given that 15% of clients are unsure of compensation models, you may need to ask for a formal disclosure document regarding how your advisor is paid.

The takeaway

Clients who know they work with fee-only fiduciaries report higher satisfaction than those working with firms that may prioritize product sales. Evaluating your provider's fee structure is a critical step in ensuring your financial strategy remains aligned with your personal interests.