Good advice is imperative Photo: Louie Douvis
We constantly see claims made by professional advisers in many sectors claiming to be independent. This is portrayed as an important advantage for their clients.
What does it mean, what they really are independent of?
When a full service business or a single service "independent" business take on a client, the primary objectives should be the same. That is, to represent the client using the skills, tools and resources of the business to the best outcome of the client.
Any deviation from this would be a breach of fiduciary duty and doing so would limit a businesses ability to successfully operate, attract new clients and most likely face serious legal issues.
The real difference a so-called independent business offers is fewer services, tools and wide range of expertise over complimentary services a full service business can offer.
Potential for conflict of interest is the flag waved by independent businesses . However potential for conflict is a regular occurrence in professional service businesses, not only through service offerings but personal networks and relationships.
Potential for conflict is often more prevalent with the "independent" businesses as they tend to rely heavily on external networks. An independent business needs these networks to keep in touch with market intelligence, best practice improvements, wider industry news, new activity and generate business. When they don't, they will not be in a position to provide the best service for their client.
People make up businesses and conflict of interest is more likely to be experienced through the actions of individuals within a business. An experienced professional will have a wide network of fiends, contacts and preferred suppliers. The issue then is not whether the business is independent but the quality of the people in the business.
An established professional business wanting your business will provide transparency in any areas of potential conflict, real or perceived, and give you the confidence your needs will be met without compromise.
So what are "independent" businesses really offering?
I suggest working with the best person and company for the job. Do your research and don't buy into the fear implied by a company about their competitors without real evidence of loss and impropriety.
Claiming "independence" as a virtue of a business is basically stating that full service companies, are corrupt, untrustworthy and lying to their clients,thus breaching fiduciary duty and breaking the law. That is a bold claim to make against the competition and a negative way of promoting a market difference.
Often "independent" really means "small". Small is fine, be up front with what you offer, not what you don't.
Joe Ward is an associate director of Tenant Representation at Colliers International,
