Advisors Without Continuity Plans Can Do Serious Damage to Their Clients

It just got a little harder to be a lone wolf financial advisor without a continuity  plan. Investment News ran a gripping piece about clients left in the lurch by advisors who suddenly died without having made provisions for clients who entrusted them with their precious assets.

While a succession plan informs the methodical transition of a business at the end of a career, a continuity plan takes effect in the event of an emergency. If an adviser dies suddenly or is otherwise unable to work, it allows another adviser to step in and take care of clients immediately. Crafting these plans is essential for advisers who care about their clients’ well-being. They also are critical for an adviser’s family members, if they are to inherit any value from the firm.

Despite this fact, only about 45% of financial advisers have a continuity plan, and only half of those professionals said they have an actual signed, formal agreement, according to a survey of 771 advisers by SEI Advisor Network in May. In other words, only about 20% of advisers have an executable continuity plan.

When Time Runs Out, Investment News

Advisors who are committed to servicing their clients properly should have contingency plans at the ready before clients raise this issue with them.

About Mark Elzweig

I am an executive search recruiter with an inside track on financial advisors, the asset management industry, and Wall Street. My work has appeared in numerous publications including On Wall Street,AdvisorOne, and Fund Fire. Journalists regularly seek me out, so you catch my bon mots in The Wall Street Journal, Research Magazine, Reuters, and more. You can follow me on Twitter @elzweig or you can reach me directly at 212-685-7070 or elzweig@elzweig.com.
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