Both the organization and the clients suffer when there is no succession plan in effect. Each financial advisor owes it to clients, employees and his or her family to make adequate plans. Initiate this inquiry at the outset because response may take awhile, and you might receive valuable assistance. If you operate with a third-party custodian, inquire about what is its policy regarding communications, assignments and client notifications. Continuity of investment and service is very important, and this broker recognized the need for continued client service.
Reps have the ability to negotiate alternate percentages.
This payment will continue for twenty years. Payments to beneficiaries do not require a license, as they are not involved in servicing the business. However, the successor OSJ rep would receive full compensation on all new sales or investment level increases. A provision for active retirement permits a rep to continue servicing existing clients at full compensation without payout reductions and production requirements. A fortunate few financial advisors have a family member in their practice - but that may not be the most appropriate successor.