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Cambridge Affiliate Helps Advisors with Succession Planning

With the graying of financial advisors, more and more are facing a difficult question: What’s next? A sister company of Cambridge Investment Research may have an answer for those who don’t want to give up control if they hand the keys to an aggregator, InvestmentNews reports




Continuity Partners, an affiliate of Cambridge, provides succession planning by making loans to advisors secured by a revenue stake, not ownership in the firm. Opened in 2010, the firm is owned by the 168 Cambridge reps and until recently was available only to them. Access to Continuity is now being offered to fee-only advisors not part of Cambridge.




Roll-ups are all the rage, heralded by HighTower, United Capital and Focus. Other advisors seeking liquidity are choosing to get bonus payments directly from the broker dealer in the form of loans. But some advisors are more interested in maintaining control of their practices and not selling to a firm focused on maximizing shareholder value, not serving clients, which can pose issues for fiduciaries. Continuity is a novel alternative for advisors seeking to take some equity out of their practice while passing the reins to younger advisors.

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