Good reasons to be independent

All the feedback we are getting indicates that a number of the big network players are poised to abandon their independent stance, instead opting (post RDR) for a 'restricted advice' proposition. Which raises some challenging questions for many of their (current) appointed representatives who might prize genuine independence.

At ValidPath we're not going to be doing this, partly because the rationales we've encountered for 'restricted advice' appear half-baked, ill-considered, and entirely focused on practitioners' financial aspirations, but mostly because we think the independent advice model is incontrovertibly better.

Here's our top five reasons for remaining independent in 2012 and beyond:

It's about who you act for. Only the independent adviser can claim to be able to fully and unambiguously represent the interests of the client;
It's about not placing yourself under undue constraints when acting for your clients. Why wouldn't the conscientious adviser seek to be as free as possible (within reason) from restrictions which might limit his ability to deliver the best possible solutions to his clients?
It's about being free to deliver decent, impartial advice on legacy business;
It's about minimising the superficially-plausible pressures on you to 'consolidate' all your clients' assets on to your network's platform of choice (usually linked to some kind of equity play);
If you wish to be in with a chance of referrals from professional firms, you'd better retain your independent status. ICAEW members, for instance, are prohibited from introducing their clients to any advisers, other than those which retain independent status.