The majority of financial advisors recently polled by Charles Schwab are attracted say the idea of breaking free of corporate shackles and going independent but many are also wary of starting a business entirely alone.

A survey of 200 advisors at large financial firms that were polled between 7 and 13 October showed that 59 per cent of them were interested in the idea of taking the independent route.

“Nearly half of all respondents go a step further to say that they would actually consider a move to independence. The surveyed advisors from wirehouses, banks and independent broker dealers are also confident about the strength of their client relationships, with eighty percent saying that they feel their clients are more loyal to them than to their firm,” the report found.

“The success of independent investment advisors has not gone unnoticed by the industry at large, and there are now more individuals and teams who are investigating whether the independent model is right for them,” said Barnaby Grist, senior managing director of Schwab Advisor Services.

The financial advisory industry is in ferment at the moment, shaken up by the prospect of further regulations and merger and acquisition activity in the sector as it recovers from the financial turmoil.

Mr Grist said not all advisors who are interested in independence want to start their own businesses from the ground up.  This is echoed in the survey findings, as more than half of the advisors participating in the survey (56 per cent) say they would rather join an existing RIA than start their own firm.

“Plugging into an existing firm is an increasingly popular choice, and more RIA firms are building business models and technology platforms that allow this to take place,” said Mr Grist.  “As a result, independence has become a viable option for a greater number of advisors.”

The survey finds that the more familiar advisors are with the concept of being independent, the more likely they are to consider such a move.  In fact, of those respondents who know someone who is or has considered becoming an independent advisor, 77 per cent find the idea appealing. 

“There is still a great deal of education that needs to take place about the process of becoming independent and the resources that exist to help advisors run their businesses,” Mr Grist said.