NASAA, the North American Securities Administrators Association, publishes Test Specifications for the Series 65 Exam, and in Section IV (H) (6) (6.2) includes Succession Planning. By Succession Planning we mean planning for the changing of the guard when senior or key executives of an advisory firm resign, retire or pass away. 

What will happen to the advisory firm in the event of such happenings? Will the firm simply wither up and disappear? That would  be disastrous for the clients of such firm. They would be abandoned by their advisers, and forced to fend for themselves for management of their savings or the investment of their retirement nest egg. To prevent such damage to clients, each investment adviser or advisory firm should create in writing a detailed succession plan.

Here's is  what Bob Eder, author of Study for the Series 65 Exam, says about Succession Planning:

SuccessionPlanning                                                                  IV (H) (6) (6.2)

Successionplanning is important for every investment adviser and investment advisory firmbecause investments of clients will be put at risk if an adviser or advisory firm suddenlygoes out of business without proper notice, thereby resultingin forcing clients to handle and manage portfolios on their own.

Important Steps in CreatingSuccession Plans                         IV(H) (6) (6.2)

These are the important steps when crafting a succession plan for an investment advisory firm:

1.                1.     identify key personnel who will play importantroles in the future and keep them informed about the firm's succession planning.

2.                2.     consult with present employees in an open fashion, and then definein writing the jobs of key personnel, specifying the functions that each keyemployee should play in the advisory firm in the future.

3.                  3.    create a timeline when succession of management willprobably occur, such as when present senior officers will want to retire.

4.                  4.     establish a training program for key personnelwho probably will constitute the future executive team on how and when successionwill come about.

Here is the link to NASAA's Series 65 Test Specifications. 

Study for the Series 65 Exam is available from Amazon in both paperback and Kindle e-book versions. Here is the link to Bob Eder's book on Amazon.

For questions about Bob Eder's Series 65 manual,  Study for the Series 65 Exam,  or questions in general about the Series 65 Exam, or about Succession Planning, feel free to email Bob Eder at bobeder@bobeder.net.

Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law, in 2001. 
See Bob Eder's Author Page on Amazon.com.
Please consider reviewing Bob Eder's  Study for the Series 65 Exam  and posting your review on both Amazon and Goodreads. Your review is important!