Private banking or RockFi: what is the major difference in managing your wealth?
Private banking or a fee-based advisory firm: the question arises as soon as your financial assets exceed a few hundred thousand euros. Both models promise the same service: a dedicated adviser, a strategy, and bespoke investments.
The difference lies neither in the quality of the people nor the range of products. It lies in how the advice is remunerated, and what that remuneration entails for the offering, the monitoring, and the transparency of costs.
The risk for you is choosing based on a brand's reputation without understanding this mechanism, only to discover years later what you have paid and for what result.
This article compares the two models point by point: regulatory framework, remuneration, full cost breakdown using a quantified example, respective strengths, industry trends, and a matrix to help you choose based on your situation.
In brief
- A private bank is a credit institution; RockFi is an advisory firm registered with ORIAS. Both are regulated by the AMF and the ACPR, but they do not perform the same function.
- The major difference is the remuneration model: commissions earned on products on one side, and fixed fees known in advance on the other.
- At RockFi, the fixed fee covers the advice, and the investment vehicles selected are 'clean shares' without retrocessions: the client knows exactly what they are paying and to whom.
- Fixed remuneration removes the incentive to favour a product based on the commission it generates for the advisor; selection is made without margin constraints, which is essential for the quality of the advice.
- Private banks retain structural advantages: balance sheets, credit, deposits, international presence, and long-standing history.
- The European framework adopted at the end of 2025 regulates commissions; the UK banned them back in 2012.
Two players, two statuses, one shared promise
A private bank is a credit institution that provides advice, holds securities, lends money, and often creates its own funds; a firm like RockFi provides advice and selection, without a banking balance sheet or in-house products. The commercial promise is identical, but the business model is not.
What a private bank is
A private bank is a department or subsidiary of a banking group. It combines four functions: advice, discretionary management, securities custody, and credit. Its credit institution licence is issued by the ACPR (Prudential Supervision and Resolution Authority), and its market activities are regulated by the AMF (Financial Markets Authority).
In most French institutions, advice is provided under the "non-independent" regime of the European MiFID II directive (Markets in Financial Instruments), in force since 3 January 2018. This regime allows the institution to retain commissions paid by management companies, provided they are disclosed to the client.
What RockFi is
RockFi is a private wealth management firm registered with ORIAS under number 23004556 as a financial investment adviser, insurance broker, and banking operations broker. It does not hold your assets: securities and contracts are held by third-party custodians and insurers.
The firm does not manufacture any products. It defines a strategy with the client, then selects the vehicles from aopen-architectureof over 3,000 options. The price of the advice is a fixed fee, known before signing, independent of the products selected.
Table 1. Identity card of the two models (2026)
Source: Monetary and Financial Code, MiFID II directive, ORIAS register. RockFi summary, September 2026.
The major difference: who pays for the advice, and how
The major difference between the two models is the flow of money: in private banking, advice is funded by commissions deducted from products; at a fee-based firm, it is invoiced as a figure that the client knows in advance.
The commission flow
An asset management company deducts ongoing charges from within its fund and then pays a portion to the distributor that placed the fund. This payment is known as a retrocession. On your annual cost and charges statement, it appears on the line labelled "payments received from third parties".
This system has two consequences. The first is accounting-based: the price of advice is not stated as a single figure, but is split between mandate fees, contract fees, and fund fees. The second is economic: a fund that pays nothing to the distributor, such as most exchange-traded index funds, does not fund the advice that might recommend it.
The fee-based model
A fixed fee pays the advisor directly. Products are then selected in "clean share" classes—meaning without retrocession—whenever these are available. The client knows exactly what they are paying; the advisor earns neither more nor less depending on the product recommended.
At RockFi, this fee is deducted from the portfolio itself, which avoids the need for a separate payment. The fee schedule is shown on the pagepricing.
"As a client, what matters to me is having the best advisor, and I am prepared to pay for a good one. What I am not prepared to accept is a lack of price transparency."
Pierre Marin, co-founder and CEO of RockFi, interviewed by Little Big Things.
A case study based on one million euros
Let’s take a financial portfolio of one million euros held in a life insurance policy, invested in unit-linked funds, for illustrative purposes only. The figures for the banking model are the 2025 market averages published byFrance Assureurson 6 May 2026; those for the fee-based model are based on a 1% fee assumption and the average equity ETF costs measured bythe AMFin 2025.
Table 2. Comparative annual recurring costs on one million euros (2025 averages, fictitious example)
Sources: France Assureurs, study on life insurance costs, 6 May 2026 (2025 financial year); AMF, Savings Observatory Letter no. 65, April 2026. Fee assumption is illustrative. Allocation, transaction costs, and tax are not taken into account.
The difference of 5,600 euros per year matters, but it is not the main point. The main point is the final line: in one model, the client can answer the question "how much does my advice cost?"; in the other, they have to piece the answer together, a method detailed in our article onthe real cost of private banking.
Good to know.Individual discretionary portfolio management is subject to VAT at a rate of 20% (Article 261 C of the French General Tax Code). A mandate quoted at 1% excluding tax actually costs 1.2% once deducted. Always check whether the fee schedule is expressed excluding tax.
What private banks do better
Private banks retain four advantages that an advisory firm cannot replicate: a balance sheet, deposits, an international network, and a history.
Balance sheets and credit
A bank lends from its own capital. Lombard credit, a loan secured by pledging a portfolio, is negotiated internally—often within a few days—as part of an existing relationship. Financing for a property acquisition or a share buyout follows the same logic. A consultancy firm obtains this financing through brokerage, which adds an extra intermediary.
Deposits and guarantees
Cash deposited in a bank is protected by the Deposit Guarantee and Resolution Fund, up to 100,000 euros per depositor, per institution. A consultancy firm does not accept deposits; cash remains with the custodian or insurer.
Network and breadth of offering
Large groups have trading desks and direct access to bond issues, foreign exchange, and operations reserved for their clients. A family with assets in several countries can find a one-stop shop there.
Longevity
Some firms have been around for over a century. This longevity provides reassurance, particularly during a handover when several generations are around the table.
"Advisers and private bankers are demonised today, when in reality, all they want to do is their job well."
Pierre Marin, Little Big Things interview.
What the fee-based model does differently
The fee-based model stands out in three areas: freedom of selection, performance measurement, and how the adviser manages their time.
Selection without margin constraints
When remuneration does not depend on the product, the adviser can choose an index fund with 0.33% fees just as easily as an active fund with 1.3%, depending on what the strategy requires. The French market illustrates the stakes: according tothe AMF583,000 retail investors bought an ETF for the first time in 2025, compared to 113,000 in 2023, and the average age of these investors is 38.
Table 3. New ETF investors in France (AMF, March 2026)
Source: AMF, Retail Investor Dashboard No. 21, March 2026.
This generation is arriving with products that do not pay for distribution. Ourwhite paper on ETFsdetails how to select them.
Measuring net performance
Advice billed as a single figure should be compared against a single-figure result. RockFi calculates each client's performance using the modified Dietz method, net of all fees and contributions, as detailed in our article oncalculating performance. The client portal consolidates all contracts, transaction history, and visible fees.
The adviser's time
RockFi advisers are former private bankers and partners in the firm who manage a deliberately limited number of families. Technology handles the administrative side, and since June 2026, an artificial intelligence agent has been monitoring portfolios on the adviser's behalf. The adviser decides and explains; the tool prepares.
Good to know.The fee-based model only makes sense above a certain level of wealth: RockFi works with families starting from €250,000 in financial assets. Below this threshold, a fixed fee is disproportionately expensive.
How the profession is changing
Private wealth management is evolving under the influence of three forces: European regulations governing commissions, a British precedent, and a generation of clients who demand transparent pricing and clear results.
The European framework adopted at the end of 2025
On 18 December 2025, the Council of the European Union and the European Parliament reached an agreement on the retail investment strategy. The text strengthens cost disclosure, introduces a value-for-money criterion for products, and regulates commissions paid to distributors without banning them. The rules will apply 30 months after their publication in the Official Journal of the European Union.
The British precedent
The UK banned commissions on investment advice on 31 December 2012 with the Retail Distribution Review. Since then, advisers have charged explicit fees, and the price of advice has become a metric that clients compare.
The coming transfer of wealth
According to the Council of the European Union, only 38% of European consumers are convinced that the investment advice they receive is primarily in their best interest. The heirs of the coming decade arrive with the expectations of their generation: a known price, an app, and net performance expressed as a single figure. The model that meets these three expectations will win over this clientele, regardless of their status.
How to choose based on your situation
The right model depends on three questions: do you need a bank balance sheet, do you want to know the price of your advice, and who are you entrusting with the monitoring?
Table 4. Selection grid for the two models
Source: RockFi analysis, September 2026.
There is nothing to stop you from combining them: a bank for your current account, deposits, and credit; and a fee-based firm for strategy and investment monitoring. Many families operate this way.
Five questions to ask both
- What was my total cost last year, in euros, across all layers?
- What proportion of your revenue from my account comes from the products you recommend?
- What proportion of my portfolio is invested in your group's funds?
- What is my performance net of fees and contributions, as a single figure?
- How many families does my adviser look after, and how long have they been looking after mine?
Our private advisers answer these five questions from the very first meeting, and expect a private banker to be able to do the same.
Sources
- Council of the European Union, "Retail Investment Strategy: agreement between the Council and the Parliament", press release of 18 December 2025, consilium.europa.eu
- Autorité des marchés financiers, Active Retail Investor Dashboard No. 21, March 2026, amf-france.org
- Autorité des marchés financiers, Savings Observatory Letter No. 65, financial investment fees, April 2026, amf-france.org
- France Assureurs, "Unit-linked life insurance in 2025", study published on 6 May 2026, franceassureurs.fr
- Légifrance, Article 261 C of the General Tax Code (VAT on discretionary management)
- Financial Conduct Authority, Retail Distribution Review, came into force on 31 December 2012
Disclaimer
This article is for educational and informational purposes only. It does not constitute personalised investment advice, a recommendation to buy or sell any financial instrument, or tax advice.
The numerical examples are fictitious and for illustrative purposes only; tax treatment depends on individual circumstances and is subject to change. All investments carry a risk of capital loss, and past performance is not a reliable indicator of future results.
Before making any decisions, please consult an authorised advisor. RockFi is registered with ORIAS under number 23004556 (insurance broker, financial investment advisor, banking operations broker), is subject to the supervision of the AMF and the ACPR, and is a member of Anacofi.
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