A majority of brokers and advisors see the “independent” model as being the most attractive, in terms of environment and revenue, Fidelity Investments’ Broker and Advisor Sentiment Index for February shows.

The independent sector is gaining popularity in terms of headcount and staff, Fidelity finds. However, as reported elsewhere on Family Wealth Report today, there appears to be a major disjuncture between what wealth managers and clients view as “independent”.

Among the brokers and advisors surveyed, 56 per cent said the independent model has become more attractive in the economic environment, and 70 per cent expect it to offer better earning potential over the next 18 months.

Among the only 18 per cent who believe the independent model is less attractive, expected costs of complying with impending regulation was the main factor.

Fidelity said the number of brokers and advisors going independent had “normalized” to pre-crisis levels, but there is an increasing tendency for teams to make the switch, and for them to take more assets with them.

Specifically, those who had recently switched firms said they took 70 per cent of client assets with them. This compares with 61 per cent in 2008.

“From new regulations to changing investor attitudes and behaviors, it’s clear that the market downturn of 2008-2009 has had significant and far-reaching implications on brokers and advisors,” said Sanjiv Mirchandani, president of National Financial – a Fidelity company.   

As a reaction to the crisis, the surveyed brokers and advisors are adapting their behavior in the following ways: putting a greater emphasis on top clients; spending more time on compliance, and partnering with another advisor to build economies of scale.

In other findings, brokers appear to be more satisfied with their careers, with the relevant index rising to 7.42, from 6.9 in 2008 when it was last completed. This is unsurprising given the market stress of the earlier year.

The results are from a survey of 1,046 US investment professionals conducted online in late 2010 by Northstar Research Partners. The respondents came from a mix of independent, wirehouse, insurance, regional, bank and RIA firms, weighted to reflect the industry composition.