Schwab study explains forces behind advisor moves to independence
Advisors have more options than ever as to how they go independent, according to a new study out from Schwab Advisor Services. Their prime reason for going solo, however, remains the freedom to serve their clients’ best interests.
Schwab Advisor Services released today its Supported Independence Study, which surveyed both advisors considering independence and those who moved to independence within the past four years about their experiences exploring and pursuing the independent model. The study also included individual interviews with advisors in both categories for a deeper perspective on how they see their careers evolving.
According to Schwab’s survey, advisors in both the considering and recently independent groups highly value the ability to “shape their own businesses.” Among those who have recently become independent, 98 percent said having the ability to provide more personalized service was a leading motivator for breaking away. Among those still considering independence, 98 percent said they are seeking the ability to align their business to their personal values, the report said.
“Though the path to independence continues to evolve in new and surprising ways, one thing remains the same: Advisors seek independence because it offers them the freedom to build their business, their way. They are motivated to offer more comprehensive and product agnostic services – and all with their clients’ best interests at heart,” said Jon Beatty, chief operating officer at Schwab Advisor Services in a statement.
Charles Failla, founder of Sovreign Financial Group, believes the Schwab results are “100 percent spot on” based on his conversations with fellow advisors.
“Many people still think going RIA is about getting a higher
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