“If there is no plan, there is no protection,”: new research.

A new research report released by Business Health has revealed alarming gaps in how Australian financial advice businesses prepare for the sudden death or permanent disablement of a business owner — with the majority of practices leaving clients, staff and families exposed.

The “What If…?” Research Report, conducted in May 2026, surveyed financial advice principals across Australia on six key areas: licensing, succession agreements, business valuations, estate plans, advisers and staff. The findings paint a stark picture of an industry that understands the risks but has largely failed to act on them.

The numbers tell a confronting story

67% of advice business principals have no documented succession, buy/sell or partnership agreement in place to protect their business in the event of their sudden death or permanent disablement.

56% have never had their business formally valued — leaving owners without a realistic understanding of what their most significant financial asset is worth, and creating potentially serious difficulties for families attempting to sell or transfer the business under pressure.

41% of practices rely on a single adviser, creating an immediate continuity gap should that person be unable to work. In these businesses, there may be no one legally authorised to advise clients from day one of a crisis.

Among sole owners — those holding 100% of their business — the situation is even more dire. According to Business Health’s broader research, only 5% of business owners that own 100% of the business have a documented succession plan in place.

The real-world consequences of inaction

The implications of being unprepared extend well beyond inconvenience. Without a documented plan, the consequences can cascade rapidly:

For clients: In the absence of another authorised adviser, clients may be left without access to advice for an extended period. This can drive them to competitors and permanently sever relationships that took years to build.

For revenue: The loss of a principal without a transition plan can cause an immediate and severe decline in revenue. Without continuity, client attrition can erode business value within weeks.

For families: The business often represents a principal’s most significant financial asset. Without a formal valuation, agreed sale mechanism or succession arrangement, a grieving family may be forced to negotiate a distressed sale — or find the business has no realisable value at all.

For staff: In the absence of clear communication and contingency planning, staff may feel uncertain about their futures and seek alternative employment — further destabilising the business at precisely the moment stability is most needed.

For self-licensed principals: The risks are amplified further. Among self-licensed businesses, 67% have only one Responsible Manager — typically the owner themselves. Without a replacement authorised adviser in place, the business may be unable to legally service clients, cutting off revenue entirely.

A gap between awareness and action

The research reveals that the problem is not a lack of awareness. Most principals acknowledge the importance of succession planning — yet execution is consistently lacking.

Encouragingly, older principals are more likely to have acted: 45% of those aged over 60 have some form of plan in place. But even this figure falls well short of what is needed across the industry.

A clear pattern also emerges around practice size. All practices with revenue exceeding $3 million, and more than 80% of those generating between $2 million and $3 million, have written agreements in place. Among smaller practices — which make up the majority of the sector — formal arrangements are far less common, despite owners carrying significant personal risk.

On a more positive note, 66% of principals have given clear direction in their estate planning regarding who to contact in the event of their death or disablement. However, the research notes that the value of an estate plan is significantly undermined if there is no corresponding agreement to service clients or sell the business.

The verdict

The report concludes with an unambiguous message: “If there is no plan, there is no protection.”

Across licensing structures, practice sizes and ownership arrangements, the consistent finding is that most businesses are not adequately prepared — and the consequences of inaction can be severe, both financially and emotionally, for everyone connected to the practice.

The report urges advice business owners to prioritise documenting a buy/sell or succession agreement, obtaining a regular independent business valuation, developing clear operational contingency plans, and ensuring staff and licensing arrangements are aligned with those plans.

The “What If…?” Research Report was conducted by Business Health in May 2026. Business Health is a specialist consultancy working with Australian financial advice businesses.

Read the report.

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Rod Bertino

Business Health has announced that its partnership with leading pension and retirement plan provider, John Hancock Retirement^[1], has again been renewed for 2025.

“After 20+ years of working with John Hancock, we are delighted that we’re able to continue our relationship, which has become such an integral part of the Hancock offer to its leading Third Party Administrator (TPA) firms” said Business Health partner Rod Bertino.

Over the years Business Health has worked closely with the Hancock team to design, develop and deliver a unique range of products and services, which have reflected the needs of the ever changing North American marketplace. “In fact, no two years have been the same for us in terms of content and delivery” Bertino commented noting that apart from Business Health’s unique suite of diagnostics, “our work has incorporated over the years, research, benchmarking, communications, workshops, strategy and one on one business consults which we conduct on site.”

A remarkable, long standing collaboration driven by a mutual desire to provide meaningful and practical support to TPAs across America. “John Hancock has been a fabulous client to work with and we’re absolutely delighted to be able to do so again in 2025” concluded Mr Bertino.

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[1] Part of Manulife Investment Management and currently maintains 57,000 plans, on behalf of 3.2m participants, with AUM of $US226B

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