Nearly 4 in 10 advisors either have not identified a buyer for their practice or plan to reassign their clients at retirement, according to a new report.
Cerulli Associates, Boston, published this finding in the third quarter 2012 issue of “The Cerulli Edge Advisor Edition.” Covering topics shaping the financial services industry, the publication draws on interviews and surveys with thousands of financial advisors and industry executives across all intermediary channels.
The survey finds that more than in five advisors (21%) have not solidified an outside buyer for their practice. An additional 11% say their firm will reassign clients their clients in exchange for compensation. And 5% of advisors will receive no compensation after their clients are reassigned.
Twenty percent of advisors, the report states, plan to hand off their practice to a junior employee or employees; and equal percentage has designated an existing partner to take over their practice. And 13% have tapped a non-partner successor.