The level of detail described above may seem excessive, but a continuity crisis doesn’t affect just high-level issues. It affects every level of a practice, and every level requires attention. A shortfall in preparation can lead to disaster. For example, a cryptocurrency firm’s founder recently died unexpectedly without leaving behind the passwords for access to $137 million dollars’ worth of accounts, resulting in thousands of angry clients.
No advisor wants to court that kind of disaster. But without paying attention to the many, often mundane, details that keep a firm stable and moving forward in a worst-case situation, advisors risk missteps that can negatively impact clients, employees and even their own families. A small investment in time upfront and a healthy amount of foresight in providing play-by-play details in a continuity plan can prevent major problems in the event of a crisis.
Gregg Johnson is executive vice president of branch office development and acquisitions for Securities America, the largest subsidiary of Ladenburg Thalmann.