Brokerage BIC continuity.
None of us will be around forever. Plan now.
The hotline sometimes hears of the BIC/brokerage dying, retiring, merging, being acquired, dissolving, languishing, AWOL/MIA, incarcerated, incommunicado, mental/physical health issues, crime victim, incapacitated, seized, locked down, casualty, ransomwared, etc.
A few years ago, lawyers were required to create a succession plan for themselves. Before that, a court would randomly appoint another lawyer to take over all their files.
Currently, license law allows for a temporary BIC in certain situations.
In a chaotic situation, LLR SCREC or a court could likely step in and appoint some other BIC in extremis to protect the BIC’s consumers. This may take time and create unwanted issues that proper lawyer guided pre-planning could avoid.
For existing BICs and brokerage owners who want to ensure continuity, they should immediately hire a lawyer to create the legal agreements and legal structures to best fit their desires and then immediately implement, including communicating the plan to all involved and where information is stored.
Given how many different brokerage business models exist, SCR could never create a standard form for this purpose without needing the brokerage’s lawyer tailoring the documents and plan to the specific brokerage’s business model and the specific brokerage owners’ desires..
Trust funds and operational accounts are often an issue, so the hired lawyer should help structure and draft the controlling legal agreements and procedures.
Contact the hotline for additional information.
This information is only accurate as of 8/1/25. You must contact SCR for updates and changes to this information after 8/1/25 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org or email byron at screaltors.org)
This information is not legal advice. This information is intended only to provide general information and may not be relied upon as specific legal guidance. Legal counsel should always be consulted before acting in reliance on this information.