Large Majorities of Financial Reps Consider Succession Planning a Concern Yet Few Currently Receiving Support from Home Office
BOSTON, Oct. 6 /PRNewswire/ -- Providing help with elements of succession planning represents a large opportunity for financial services distributors according to a survey of more than 500 financial representatives developed by Mathew Greenwald and Associates for John Hancock Financial Network. According to the survey, conducted in June 2009, two-thirds of respondents (66%) said that a strong succession program offered by another firm would be a factor in their switching companies, with 20 percent saying it would be a major factor.
"Our survey found succession planning to be very important to financial representatives," said Brian Heapps, Executive Vice President of Sales and Business Development, John Hancock Financial Network. "We know it also plays a critical role in the future health of our whole industry. Succession done right fosters the growth of younger reps by encouraging mentoring and collaboration between different generations of advisors. Our industry needs to develop good programs if we're going to retain the knowledge of our senior advisors and keep up with the country's investment and insurance needs." More than six in ten representatives (63%) reported that succession planning is a concern of theirs, with a majority (55%) feeling the industry has not done a good job of helping reps with their own succession planning. Of those surveyed, two-thirds are not planning on retiring for at least 10 years, and about half are expecting to sell their businesses.
Roughly one-third (31%) of representatives had actively worked on or completed a plan; another third (34%) had thought about succession but had not yet done anything, and the last third (35%) had not started thinking about succession.
Few representatives said that they had access to help with succession planning through their current companies. The most help offered was for obtaining a business valuation for investment businesses (42%); obtaining valuation for fee-based businesses (40%), and finding a successor (40%). Only about a third had help with financing for the transition (34%), obtaining business valuation for insurance business (35%); and arranging third party management of the transition (30%).
However, large majorities indicated they would like assistance with most of the elements of succession planning: -- 72% wanted help obtaining a valuation for investment business
-- 67% wanted help financing the transition
-- 65% wanted help obtaining a valuation for fee-based business
-- 65% wanted help obtaining a valuation for insurance business
-- 61% wanted help arranging third party management of the transition -- 58% wanted help with finding a successor "Clearly, distribution companies that offer strong succession plans backed up with real support for advisors will be well positioned for the future," said Heapps.
About John Hancock Financial Network John Hancock Financial Network is a national network of independent firms with over 1,900 financial professionals across the U.S. A leader with the stability and scale to offer an innovative business model, John Hancock Financial Network gives entrepreneurial financial professionals the power to effectively build unique businesses, based on their own vision and market opportunity. For more information on John Hancock Financial Network and its national network of independent firms, visit http://www.jhnetwork.com/.
About John Hancock Financial and Manulife Manulife Financial is a leading Canadian-based financial services group serving millions of customers in 22 countries and territories worldwide. Operating as Manulife Financial in Canada and Asia, and primarily through John Hancock in the United States, the Company offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Funds under management by Manulife Financial and its subsidiaries were Cdn$421 billion (US$362 billion) as at June 30, 2009.
Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '945' on the SEHK. Manulife Financial can be found on the Internet at http://www.manulife.com/.
Registered Representative/Securities and Investment Advisory Services offered through Signator Investors, Inc., member FINRA, SIPC, a Registered Investment Advisor. 197 Clarendon St., Boston, MA 02116. DATASOURCE: John Hancock Financial Network CONTACT: Melissa Berczuk of John Hancock Financial Network, +1-617-663-4750, Web Site: http://www.jhnetwork.com/
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