Tr?id=566623520170033&ev=PageView&noscript=1

ÍøÆØ³Ô¹Ï

FINRA Releases Regulatory Notice Urging Advisors To Prepare Succession Plans

Posted on November 15th, 2022 at 1:12 PM
FINRA Releases Regulatory Notice Urging Advisors To Prepare Succession Plans

From the Desk of Jim Eccleston at ÍøÆØ³Ô¹Ï.

The Financial Industry Regulatory Authority (FINRA) is urging financial advisors to establish a succession plan incase of unexpected life events as an increased number of advisors near retirement.

As of December 2021, 16.3% of advisors were 60 and older, while 8.2% were 65 and older, according to a recent FINRA regulatory notice. FINRA noted that the percentage of advisors in each of these brackets has increased over the past few years. FINRA outlined the benefits of “proactive succession planning”, which can serve to benefit the clients, member firms and advisors themselves, according to the notice.

FINRA’s notice provides an example of a smaller firm whose chief compliance officer and Financial and Operations Principal (FinOp) unexpectedly died during one weekend. According to FINRA, “The firm had a succession plan in place that, among other things, promptly notified FINRA of the situation and engaged a recruiting firm to hire a new CCO and FinOp. As a result of the firm’s proactive planning for these events, the firm successfully continued operations without any interruptions in service to its customers.” Furthermore, the notice discusses common types of succession plans and provides an overview of relevant FINRA rules regarding succession plans.

ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, finra, cco

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

ÍøÆØ³Ô¹Ï just wanted to say thanks for your work in helping us get back some of the money we lost. ÍøÆØ³Ô¹Ï are not by any means rich, but we have saved some money and we have done so through a tight-fisted approach to most everything we do. So losing a significant chunk of money hurt…especially at a time when everyone else was growing their accounts. ÍøÆØ³Ô¹Ï really appreciate the work you did.

Allan and Adele

LATEST NEWS AND ARTICLES

1783957061 Law
July 13, 2026
FINRA Warns of Growing Risks From Finfluencers and AI-Driven Investment Content

Financial Industry Regulatory Authority (FINRA) regulators are raising concerns about the increasing influence of social media personalities and artificial intelligence (AI) on retail investors, particularly those managing their own investments without professional guidance.

1783615970 Law
July 9, 2026
FINRA Suspends Former Branch Manager for Supervisory Failures Linked to Excessive Trading and Churning

A former regional branch manager at a broker-dealer has agreed to Financial Industry Regulatory Authority (FINRA) sanctions after the regulator found that he failed to supervise registered representatives who engaged in excessive trading and churning of customer accounts.

1783525964 Law
July 8, 2026
SEC Sanctions David Lerner Associates for Regulation Best Interest Violations

David Lerner Associates has agreed to settle Securities and Exchange (SEC) charges alleging violations of Regulation Best Interest (Reg BI) that resulted in unnecessary costs to retail investors, according to InvestmentNews.