Lack of young advisers may leave businesses floundering
That’s according to Janine Scott, senior lecturer in financial planning and advice at Massey University.
She said New Zealand was lagging other countries when it came to succession planning for financial advice businesses.
“In the US, I do see more development in succession planning. There are even firms whose sole business is helping firms implement a succession plan. However, in New Zealand, it’s hard to tell what the situation is. But I get the impression from interacting with advisers that there is little, if any, planning. Most are consumed with combating present legislative challenges versus worrying or planning to pass on their business.”
She said most advisers around the world had built an advice practice rather than a business. “It’s less challenging to approach passing on a business but passing on a practice, not so easy. That’s why it makes sense that most will probably ‘die with their boots on’.”
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