According to ThinkAdvisor, a new study from Cerulli Associates reveals that while affluent investors increasingly prefer fee-based financial advice, many still value alternative compensation structures. The findings suggest that firms offering a range of pricing models stand to capture a broader client base and convert self-directed investors into fully advised relationships.

Over the past decade, financial firms steadily have moved from commission-based compensation to asset-based fees. According to Cerulli's research, 36 percent of affluent investors favor paying a fee based on assets under management.

Despite this, investor preferences remain diverse. Cerulli's study found that 39 percent of Bank of America clients and 34 percent of Capital One customers still lean toward commission-based arrangements, typically due to limited, transactional interactions at those firms. Meanwhile, no-fee, self-directed platforms remain popular, with 49 percent of Vanguard clients opting for them, alongside 32 percent of Fidelity and 31 percent of Charles Schwab clients.

According to ThinkAdvisor, the research highlights that self-directed platforms and commission structures tend to attract independent, investment-savvy clients, while fee-based models appeal to those seeking comprehensive, ongoing advice. Still, Cerulli cautions firms against relying too heavily on a single pricing approach. Discrete, fee-for-service models for specific needs remain valuable in introducing clients to advisory relationships, as reported by ThinkAdvisor.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.