Most Investors Want Fiduciary Advice — but Many Aren't Actually Getting It

Why It Matters

Fiduciary‑bound RIAs can capitalize on higher client loyalty and fee‑based revenue, while non‑fiduciary firms risk losing clients as investors become more informed and willing to pay for advice.

Key Takeaways

• 58% of retail assets are in fiduciary relationships, despite 70% investor expectation
• Fiduciary clients show 70% satisfaction vs 41% for non‑fiduciary
• Pay‑for‑advice willingness up to 68% in 2023, from 38% in 2010
• Asset‑based fees favored by 36% of affluent investors, especially $2‑5M segment

Pulse Analysis

The Cerulli report highlights a stark disconnect between investor expectations and the reality of fiduciary coverage. While seven‑in‑ten affluent clients assume their advisors must act in their best interest, just over half of assets are actually managed under a fiduciary standard. This gap creates a clear retention advantage for registered investment advisers (RIAs), whose fiduciary duty translates into higher satisfaction scores and lower churn. Advisors who can demonstrate fiduciary compliance are positioned to capture the loyalty of a client base increasingly sensitive to conflict‑of‑interest concerns.

Parallel to the fiduciary gap, the appetite for paid financial advice has surged dramatically. Willingness to pay climbed from 38% in 2010 to 68% last year, driven by fee compression, broader access to professional guidance, and the complexity of tax and estate planning for wealthier households. Asset‑based percentage fees, the hallmark of the RIA model, are now preferred by 36% of affluent investors, with the $2‑5 million segment showing the strongest bias at 42%. This fee structure aligns advisor incentives with client outcomes, reinforcing the fiduciary narrative and supporting sustainable revenue streams for fee‑only firms.

For non‑fiduciary platforms and commission‑based advisers, the data signal an urgent need to adapt. As DIY investors encounter more sophisticated financial challenges, they will seek a seamless path to advisory services. Firms that build low‑friction transition mechanisms—such as hybrid models or easy‑on‑ramp advisory add‑ons—can capture the segment of investors currently on self‑directed platforms but poised to switch when guidance becomes essential. Meanwhile, educating the 9% of affluent investors who remain unaware of their relationship’s standard of care could unlock a wave of account migrations, further accelerating RIA growth in the coming years.