Succession planning a key client commitment: Mentor

Ensuring a seamless transition of clients following an adviser’s exit from the industry should be considered a core part of that adviser’s client service offering, according to Mentor Education Group.

In a statement, the registered training organisation said most advisers will reach their “use-by date” prior to their clients, making succession planning a “vital component” of service and client commitment.

“Buyer of last resort might be an excellent commercial life raft for the planner, but the subsequent on-sale and distribution of clients as ‘books of business’ are by far the worst possible outcomes for clients,” the statement said.

“Exit succession and a seamless transition in an M&A process is another vital component of service and client commitment.”


Mentor founder and director Mark Sinclair said service delivery needs to be “the highest of priorities”, as any kind of non-performance in this area will result in “frustration and loss of confidence”, and that this extends to their confidence in an adviser’s succession planning.

“The effectiveness, level and quality of client service can actually be measured and quantified in the balance sheet and accounts of a financial practice, it will easily be identified in the planning business revenue in fees charged and longevity of client retention,” Mr Sinclair said.

“All because the client is confident they are at the centre of the planning business and their financial wellbeing and lifestyle, protection, wealth accumulation and retirement aspirations will be serviced long after their adviser has retired and exited the industry”.

Succession planning a key client commitment: Mentor
Mentor Education Group, succession planning, buyer of last resort, books of business, financial advice, financial adviser, Mark Sinclair
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