Two-thirds of firms (67 per cent) have reported that they do not have a succession plan ready for implementation, according to the new 2013 Fidelity RIA Benchmarking Study conducted by Fidelity Institutional Wealth Services, a division of Fidelity Investments.

The 2013 study revealed that more than half of participating firms (55 per cent) have not changed their approach or readiness for succession for the past three years, the firm said.

Fidelity said that effective succession planning is becoming even more critical to ensuring current business owners hand over control to others in a way that is least disruptive to their firm’s operations, clients and long-term value.

“While there is no substitute for comprehensive succession planning, we recognize that for many RIA firm leaders, this longer-term planning is a process that requires time,” said David Canter, executive vice president and head of practice management and consulting at Fidelity Institutional Wealth Services.

Fidelity’s 2013 Fidelity RIA Benchmarking Study found that more than half of participating advisors (57 per cent) want to transition their firm to someone internally (versus 11 per cent wanting to merge with another firm and remain involved, and 14 per cent wanting to sell their firm and exit the business).

These findings are in line with the informal surveys Fidelity has conducted at succession planning workshops across the country, which also found that the majority of those who want an internal transition have not yet identified a successor, the firm said.