Boston, MA, July 26, 2010 – A new report from Aite Group details the experience of financial advisors going independent. Based on an Aite Group survey of 152 independent U.S. financial advisors, independent RIAs, and independent brokers conducted in Q4 2009, the report contrasts the experience of advisors that broke away from captive wealth management firms with those that began as independent advisors and examines the reasons behind advisors’ choice to break away. The report also outlines the challenges advisors have experienced along both routes, provides insight on client retention rates for breakaways, and discusses whether advisors would recommend going independent.

The independent broker/dealer and independent registered investment advisor (RIA) spaces have been hot topics in recent years, and many advisors have shown great interest in going independent. Forty-one percent of wirehouse breakaways stated that they left their employer due to 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 given as leading reasons for going independent. Despite challenges that make going independent seem quite daunting, close to 90% of independent advisors would recommend this step.

“Much has been done by the independent sector to make the transition easier for captive advisors,” says Alois Pirker, research director with Aite Group and author of this report. “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. In the area of technology, a new breed of platforms targeted at independent advisors eases the transition.”

This 25-page Impact Report contains 18 figures. Clients of Aite Group's Wealth Management service can download the report.