As an asset manager, one is obliged to appoint a qualified successor in the interest of the clients and surviving dependants.
With the succession agreement, the customer takeover and conditions are set. But how is it ensured that this contract is also adhered to?
If it was agreed that the survivors should receive a part of the income over x years, but after two years all clients are gone, what then? Which neutral body ensures that this is implemented correctly?
IGUV offers the following solution:
As an independent organisation, the development of the surviving clients and the associated remuneration to the surviving dependants is reviewed and reported annually in accordance with the agreement.
The contracting parties agree to a right of inspection, which ensures a complete review and compliance with the agreement. The contract to ensure the succession arrangement is signed by both parties.
If the succession case occurs, IGUV is informed and makes an inventory as of the reporting date. IGUV carries out the checks according to the succession regulation and reports any deficiencies or confirms the correct implementation.
Upon conclusion of the contract, 0.005% of the AuM, at least CHF 1,500, is charged once. In the event of succession, the costs of such a guarantee amount to between 2 and 10 percent of the benefits paid to the surviving dependents.
This article is about the definitive succession. IGUV helps, however, to provide a qualified substitute for a limited transitional period.