There have been arguments in the industry about whether the assets under management-based fee model still serves investors — or whether some other model would be better.

According to a recent SEI Advisor Network study, nearly 90 percent of advisors are currently using an AUM-based fee model in some capacity. But no fee strategy is one size fits all. Certain client situations, like small accounts or advice on assets held away, may be more suited to other fee structures.

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Of the 775 respondents to SEI's survey, 74 percent did not have a fee structure for smaller accounts.

SEI found that 26 percent of the advisors surveyed charge fees based on an AUM model plus some sort of fee for initial financial planning. Typical fees are between $1,500 and $10,000 depending on service and client complexity, according to SEI.

SEI examines whether advisors charge for assets under advisement, or “held away” assets, typically a 401(k), 403(b) or 529 plan.

A “brand new” fee model that SEI examines is a fee based on salary plus total net worth.

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