Among advisors who know someone who has started or joined an RIA firm, an overwhelming 95 per cent say they find the RIA model appealing.

“We see a growing number of IBD advisors transitioning to the independent RIA model,” said Nick Georgis, a vice president at Schwab Advisor Services.

“In our experience with these advisors, the desire to have more flexibility to develop and grow their own business and the ability to offer more customized solutions to clients are two significant drivers of this trend,” said Georgis, who noted that Schwab saw a 45 per cent increase in the number of advisor teams transitioning to independence from IBD firms in 2010 compared to 2009.

Of the 157 IBD-affiliated advisors surveyed, 56 per cent feel “somewhat” independent and 36 per cent say they are “completely independent.”

Nevertheless, 81 per cent of advisors acknowledged that their business would be different if they were to start or join an independent RIA firm.

In terms of the benefits of joining or starting an independent RIA firm 43 per cent mentioned the greater ability to develop and grow their own business, 42 per cent said delivering more customized solutions and 41 per cent said hand picking their own team were key positives.

In terms of broader events that might impact the decision, the top two macroeconomic changes that would increase the likelihood that an advisor would transition to a fully independent RIA are a friendlier economic and tax environment for small business owners and an improved overall market and economic environment .

Of the advisors surveyed, 58 percent say they would prefer to join an existing firm, while 34 per cent say they would prefer to start their own firm.

Finally the survey also found that an average 82 per cent of IBD advisors’ assets under management are currently in a fee-based model, and there is a clear trend toward most IBD advisors maintaining a primarily fee-based practice or a mix of commission- and fee-based business.

The two biggest potential advantages to a fee-based model cited by advisors were providing an easier to understand pricing model for clients and having greater predictability in revenue .

Participating in the survey, which was conducted by Koski Research from 5 - 21 January 2011,were 157 financial advisors employed by independent broker dealers and insurance firms.