According to Financial Planning, the debate over how financial advisors should charge for their services continues to evolve, with a growing number of firms blending traditional and alternative pricing models. While the industry's standard 1 percent of assets under management ("AUM") fee still dominates, more advisors are adopting flat, hourly, and retainer-based options alongside it.

According to the latest Investment Adviser Industry Snapshot from the Investment Adviser Association and COMPLY, over 95 percent of SEC-registered RIAs continue to collect AUM fees. However, more than 85 percent of those offering financial planning services also use fixed or hourly pricing.

Financial Planning reports that flat-fee advocates argue this approach compensates advisors for the actual planning work clients value most and avoids conflicts of interest tied to asset gathering.

Since 2000, the share of firms using fixed fees has climbed by 9 percentage points to 45.2 percent, while performance-based fees, largely driven by private fund advisors registering after 2011, also have risen. Meanwhile, commissions have continued to decline, now collected by just 2 percent of RIAs, according to Financial Planning.

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