Advisers are still making a quarter of their income from commission despite a downward trend in payments, according to latest data from the FCA.
The regulator has released a raft of statistics drawn from the Retail Mediation Activities Return filled out by advisers.
Commission accounted for 26 per cent of income from retail investment business in 2016, down from 31 per cent in 2015, the data shows.
Commission on retail investment business in total topped £843m, £100m less than in 2015.
Fees and charges now account for 71 per cent of revenue, up from 64 per cent the year before.
Though 88 per cent of advisers earned some revenue from insurance mediation and 45 per cent do some form of mortgage intermediation, financial advisers are only making 11 per cent of their revenue through insurance and 5 per cent from mortgages.
84 per cent of revenue was classified as investment based.
Percentage based charges are still by far the most common in the market – more than twice as popular as both hourly charges and fixed fees for initial charges and more than three times as popular when charging for ongoing services.
Around 80 per cent of adviser payments were facilitated through a provider or platform.
Small firms show strength
91 per cent of firms have five advisers or fewer. Only 38 firms have more than 50 advisers, but the top 1 per cent of firms by adviser numbers account for nearly half of all advisers in the market.
Per adviser, firms with between two and five advisers make the most revenue – £143,937 compared to £140,003 for firms with over 50 advisers and £129,679 for one adviser firms.
Only 15 per cent of firms provide restricted advice and just 2 per cent provide both independent and restricted advice.
The data follows a release from Apfa yesterday which also draw on numbers compiled from FCA data.