The fee revenue surge represents a notable achievement for an industry that less than a decade ago derived the majority of its revenue from commissions on the sales of securities.

The surge in revenue from fees was so significant that in 2021 fees comprised 54 percent of revenue from the top 25 broker-dealers, according to an InvestmentNews survey. On the other hand, revenue from commission was 34 percent. Other revenue generated primarily from interest rate spreads was 12 percent.

An industry recruiter shared that Regulation Best Interest is accelerating the advisory fee focus and making commission-based business difficult to transact. The shift away from commission seems to have gained a foothold during the Covid-19 pandemic. Competitive trends from the growth of RIAs in the industry also are making commission-based business difficult to transact.

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