Following its acquisition of Ladenburg Thalmann earlier this year, Advisor Group plans to consolidate Investacorp, Securities Service Network (SSN) and KMS Financial Services, three former Ladenburg broker-dealers, into Securities America, the largest of Ladenburg’s former broker-dealers. The consolidation will begin this summer and is slated to wrap up by the fourth quarter of this year.
Former Ladenburg firms, Securities America and Triad Advisors, will remain stand-alone firms, alongside the pre-existing Advisor Group firms FSC Securities Corporation, Royal Alliance Associates, SagePoint Financial and Woodbury Financial Services. The company indicated that no further integration of broker-dealer and RIA firms resulting from the Ladenburg merger is anticipated.
“Our decision to align Investacorp, SSN and KMS with Securities America was driven by one goal: Delivering the very best technology, platforms, tools and other growth resources that we have to all financial professionals across each of these firms as expeditiously as possible,” said Jamie Price, CEO of Advisor Group.
“From the outset, we have been clear that no former Ladenburg firms would be combined with the four original Advisor Group firms, while also emphasizing that any organizational changes would be based on what most effectively and efficiently adds value to the financial professionals affiliated with our newly-acquired firms,” he added.
Each of the three Ladenburg firms will be combined with Securities America in stages, beginning with Investacorp in mid-July, followed by SSN in mid-September, and KMS in November.
The company claims that no repapering of client securities accounts will be needed for financial professionals at the three firms, while a small number of advisory accounts at KMS will require positive consent to change firms.
The Investacorp, SSN and KMS advisory councils will continue in their current capacity providing guidance to Securities America and Advisor Group.
Triad will continue to support hybrid advisors and RIAs and will assist in advancing Advisor Group’s RIA strategy and investments going forward, the company said.
Advisor Group is the nation’s largest network of independent wealth management firms, serving approximately 11,300 financial professionals and overseeing more than $450 billion in client assets.