More than ½ of all advisory firms have no succession plan in place. That is true despite the fact that 48% of all owners expect to retire within 12 years and almost 18% expect to retire within 7 years.
To be effective, succession planning must take place well in advance of the succession. That is because effective succession planning will result in a smooth transition of the business, from servicing clients, to developing business, and to overseeing management.
Another interesting fact is that in 2010, fewer than 1 in 6 advisory firm staff members were primary owners of firms (defined as owning more than 5% of the firm). That number falls to 1 in 10 advisory firm staff members in the larger firms. If advisory firms wish to consider this approach to succession planning, firms need time, and expert guidance, to groom qualified succession candidates and to put a multi-year agreement in place.
FinancialCounsel.com, hosted by James J. Eccleston, is a companion website to this blog, along with EcclestonLaw.com. It contains complementary material of general interest to investors and financial services professionals. Investors will find material on securities arbitration to recover investment losses; industry and financial markets intelligence; and strategies for estate planning. Professionals have access to material on broker/adviser registration, regulation, compliance and disciplinary proceedings; industry and financial markets intelligence; strategies for estate planning; and broker/adviser employment litigation and injunctions, including defamation and non-competition/solicitation issues. 
