The number of RIAs managing $5 billion or more in assets increased to 343 in 2025 from 194 in 2020, giving investors more choice than ever when selecting a financial advisor, according to a new white paper by Cerulli, released in partnership with RIA Credent Wealth Management on Wednesday.
But many investors remained in the dark when it came to how advisors were paid and what the differences were between advisors in general, the report, “Fee-Only, Fiduciary, and the Changing Landscape of Independent Advice,” warned.
That was because, although the number of scaled RIAs continued to expand, the business models, compensation structures and fiduciary obligations across these firms differed significantly, according to the firms.
Therefore, it was increasingly important for clients to understand how advisors were paid and the standards under which they operated, the firms said.
Among investors who said their advisor must always act in their best interest, 73% reported being satisfied and not seeking a new provider. That compared with 48% of investors who said their advisor could recommend products that put the provider’s or advisor’s interests ahead of their own, according to the white paper.
A separate 48% of the latter group reported being satisfied but open to considering other options, while 4% were dissatisfied.
“Today’s investors have more access to advice than ever before, but understanding the differences between wealth management providers has become increasingly challenging,” according to Brendan Powers, Senior Director, Product Development and Institutional at Cerulli.
“The distinctions between fiduciary and suitability standards, fee structures, and product offerings are often opaque, making it difficult for the average client to understand differences across firms,” he said in a press release announcing the white paper’s release.
According to the report’s executive summary, “Demand for human financial advice continues to rise despite the proliferation of available information, do-it-yourself digital tools, and artificial intelligence, underscoring the importance of advisor-client relationships, personalized guidance, and behavioral support.”
But the summary said that, while “true fee-only independent RIAs continue to grow … their marketshare has declined as other RIA models expand more quickly.”
Among the $5 billion-plus RIAs studied, fee-only independent firms’ share of assets fell to 34% at year-end 2025 from 42% in 2020, the firms pointed out.
The summary went on to say, “Fees should be evaluated in the context of the value of the services delivered. Lower-cost models may be appropriate for simpler needs, while more comprehensive relationships (e.g., advanced planning, specialized investment solutions, greater personalization) may justify higher all-in costs.”
“Investors shouldn’t have to be experts in the wealth management industry to understand who they’re trusting with their financial lives,” according to David Hefty, Co-Founder and CEO of Credent Wealth Management.
“They should know how their advisor is paid, where potential conflicts may exist and whether that advisor is required to act as a fiduciary,” Hefty said in the press release.
He added, “As investors have more firms to choose from, asking those questions upfront becomes even more important.”
In a foreword to the report, Hefty said, “We commissioned this study to give investors and advisors alike an independent basis for evaluating their options in a marketplace crowded with alternatives.”
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jeff.berman@wealthsolutionsreport.com.
