The number of fee-only financial advisors will more than double to 27,000 by 2012 in the US from the current headcount of 10,466, research firm Tiburon Strategic Advisors says, as reported by publication Planadviser.

Tiburon says fee-only financial advisor average assets under management will grow to $310 million by 2012 and their clients will increase in number to 3.2 million by 2012.

The rise of fee-only advisors is seen as significant as such financial intermediaries are regarded as offering more independent financial advice than advisors who are paid a commission on the sale of financial products.

Fee-only financial advisors currently generate $30 billion in revenues, but revenues will increase to $55 billion by 2012, Tiburon predicts. Fee-only financial advisors earn $15 billion currently, but their net income will increase to $20 billion by 2012, the release said.

But Tiburon says that fee-only financial advisors’ profit margin will decrease to 36 per cent in 2012.