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Part of a succession plan? Get it in writing says US advice leader

Next generation advisers need to be wary of falling into a 'succession planning crisis' as has been seen in the US market.

Part of a succession plan? Get it in writing says US advice leader

The founder of a US financial planning network has warned next gen planners to get promises of succession opportunities in writing or risk having the rug pulled from beneath them in years to come.

Alan Moore, founder of the XY Planning Network said the biggest mistake younger advisers make in the US is buying into a firm's succession plan without seeing anything in writing. He said believing unsigned promises was a ‘huge mistake’.

He said: 'We have the failed succession planning crisis in the US. All the advisers are getting older, they all said they were going to retire, all the young people listened, so they showed up and they said in five or 10 years, you can buy the practice from me.

'About seven years in you realise that you never signed anything and they’re not actually implementing anything, so you start getting annoyed because the owners start talking about another five or 10 years.’

He added: 'Agreeing unsigned promises is a huge mistake and ultimately I think advisers need to take control of their own career path.'

However he added that selling a firm was ‘stupid financially’.

‘No one should ever sell their business in financial planning, when you run the numbers,’ Moore said.

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