Forty-one percent of financial advisors who have left wirehouses said in a survey by Boston-based Aite Group that their exit was caused by a high degree of uncertainty at the firm or because its brand had suffered during the financial crisis.

Greater freedom to choose investment products for clients, the ability to better grow their books of business, and the opportunity to be an entrepreneur were other primary reasons the advisors gave for going independent.

Despite the challenges that came with going independent, close to 90 per cent of the 152 independent US financial advisors, independent RIAs, and independent brokers surveyed by Aite in the fourth quarter of 2009 said they would recommend the independent route.

“Much has been done by the independent sector to make the transition easier for captive advisors,” said Alois Pirker, research director for Aite and author of the report, Wealth Management on the Move: The Experience of Going Independent.

“RIA custodians like Charles Schwab, Fidelity Investments, Pershing, and TD Ameritrade and independent broker/dealer firms, in particular large networks like LPL Financial, have made significant investments to support breakaways setting up independent practices,” Pirker said in a statement.

“In the area of technology, a new breed of platforms targeted at independent advisors eases the transition.”