Fee transparency has become an increasingly important part of client relationships. Industry data shows that 86% of advisory firms use AUM fees as their primary pricing model, while 92% include AUM-based fees in some form.
Industry reports found that average retainer fees increased 52% since 2023 to $6,815, while 53% of advisors raised their fees during the past 12 months. As fee structures continue to evolve, clients increasingly expect advisors to explain not only how they charge, but also what they receive in return.
How Can RIAs Demonstrate Their Value?
Clients are more likely to accept advisory fees when they understand the services they receive. RIAs should explain how ongoing advice extends beyond investment management to include retirement planning, tax strategies, and guidance during periods of market volatility.
Industry research shows that 85% of high-value clients say more personalized communication increases their confidence in an advisor, while 88% say it influences their decision to remain with their current firm.
How Should RIAs Explain Their Fee Structure?
Clients should understand whether fees are based on assets under management, fixed retainers, or a combination of pricing models.
Average AUM fees generally decline as account size increases. Industry surveys show that 62% of advisors charge at least 1% on $1 million portfolios, compared with 32% on $2 million portfolios. As firms continue to expand their service offerings, transparent fee discussions are expected to become more important during onboarding and annual reviews.
How Can RIAs Show Measurable Results?
Clients want to understand how advisory services improve their financial outcomes. RIAs should regularly review progress toward financial goals, tax savings, and other measurable results during annual reviews.
Industry research shows that 89% of high-value clients say personalized communication influences whether they recommend their advisor.
What Overlooked Areas Can Demonstrate Client Value?
Additional sources of client value can also make advisory fees easier to justify.
Securities class action settlements totaled approximately $8 billion in 2025, yet many eligible claims went unclaimed because filing them required significant manual work. Platforms such as 11th.com automate the entire process. Its AI infrastructure covers all types of recovery alpha, including class action settlements, SEC Fair Funds, shareholder compensation, digital asset recovery, and other government and private recovery programs and proceedings across all asset classes and jurisdictions.
Recovering settlement proceeds gives clients money they would not have otherwise received, creating additional value that can help offset advisory fees.
What Should RIAs Prioritize in 2026?
Industry surveys show that advisory fees continue to evolve as firms expand financial planning services and more advisors adjust pricing. In 2026, transparent fee discussions, clearly defined services, and measurable client outcomes are expected to become increasingly important as RIAs compete for new assets and long-term client relationships.
FAQ
Why is fee transparency important for RIAs?
Clear fee discussions help clients understand what they are paying for and strengthen trust in the advisory relationship.
How can RIAs justify their advisory fees?
By connecting fees to specific services, measurable outcomes, and ongoing financial guidance.
What should RIAs include when explaining their fee structure?
Clients should understand how fees are calculated, what services are included, and when fees may change.
How can RIAs demonstrate measurable value to clients?
Regular reviews of financial goals, tax strategies, portfolio decisions, and other tangible outcomes help clients see the value of ongoing advice.
What overlooked service can help reinforce advisory fees?
Securities class action recovery can provide clients with additional funds they may not have claimed, demonstrating added value beyond traditional investment management.
