Investacorp, Securities Service Network and KMS Financial Services to Become Part of Securities America
Advisor Group, the nation’s largest network of independent wealth management firms, today announced an organizational realignment to drive the accelerated delivery of its industry-leading technology, platforms and growth resources to all financial professionals across its recently expanded organization. As part of this realignment, Investacorp, Securities Service Network (SSN) and KMS Financial Services will be integrated into Securities America under a process that emphasizes continuity of service and minimal administrative burden for financial professionals. Advisor Group confirms no repapering of client securities accounts will be needed for financial professionals at Investacorp, SSN and KMS. A small number of advisor accounts at KMS will require positive consent to the change of firms.
Upon conclusion of this realignment plan, which will commence this summer and wrap up by the fourth quarter of this year, both 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.
Jamie Price, CEO of Advisor Group, said, “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. We reached this decision after a comprehensive review of operations that we commenced shortly after the completion of our merger with Ladenburg in late February, in a process that included feedback from financial professionals. Based on this review, we are implementing these organizational changes in a carefully staged, multi-month process that prioritizes consistency of support for financial professionals and their clients.”
“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,” Mr. Price continued. “This announcement is consistent with our strategy and reaffirms our commitment to expedite the ongoing delivery of leading-edge technology, products and resources to cement our position as the leading multi-brand, multi-clearing and multi-custodial platform in the wealth management space today.”
Advisor Group further reported the following key details of its organizational realignment plan:
• Subject to regulatory approval, each of the three Ladenburg firms being combined with Securities America will transition in stages, beginning with Investacorp in mid-July, followed by SSN in mid-September, and KMS in November.
• This staged approach will maximize the ability of Advisor Group and Securities America to focus on the unique transition needs of the financial professionals at each of the three firms that will become part of Securities America.
• No repapering of client securities accounts will be needed for financial professionals at Investacorp, SSN and KMS. A small number of advisory accounts at KMS will require positive consent to the change of firms.
• Many of the home office staff that financial professionals have come to know and trust at Investacorp, SSN, and KMS will continue serving and supporting them after they move to Securities America.
• The Investacorp, SSN and KMS advisory councils will continue in their current capacity and serve as the voice for their communities providing ongoing guidance to Securities America and Advisor Group related to the unique needs of each firm.
• Advisor Group will offer transition expense assistance to financial professionals at Investacorp, SSN and KMS.
• No further integration of broker-dealer and RIA member firms within the Advisor Group network as a result of the Ladenburg merger is anticipated.
• Triad will continue to expand on its leadership position supporting hybrid advisors and RIAs and will play a key role in advancing Advisor Group’s RIA strategy and investments going forward.
Jim Nagengast, CEO of Securities America, said, “We are excited to welcome the financial professionals and home office staff members from across Investacorp, SSN and KMS to our team, and to quickly providing them with access to the full spectrum of technology, operations, practice management, marketing and compliance resources that exist throughout the Advisor Group network. In many ways, this integration is the natural outgrowth of a strategy that has been underway for some years now, as the firms under Ladenburg’s ownership have worked increasingly closely together to harness the power of our own network. As a result of the Advisor Group and Ladenburg transaction, we have even more resources and technology to bring to our financial professionals, such as eQuipt, MyCMO and MySuccessionPlan.com, to name but a few. Our focus has continued to be on creating a platform that enables financial professionals to grow faster than they could anywhere else, and the combination of our Ladenburg offerings with those from Advisor Group truly sets us apart from any competitor. Equally important, we have the experience and ability to deliver a seamless transition because of the industry-leading technology, wealth management solutions, business coaching and business consulting for which our combined firms are known.”
Mr. Price concluded, “This organizational realignment accelerates our ability to deliver on the power and promise of the merger of Advisor Group and Ladenburg. We have intensified our progress in creating one of the most comprehensive and best-in-class platforms for financial professionals in the wealth management space. Moreover, our ongoing commitment to a multi-brand approach means financial professionals will continue to benefit from maximum choice and flexibility, combined with a boutique service experience supported by familiar relationships, all backed by the scale and resources of one of the largest networks in the industry. Going forward, our multi-brand model will continue to be a distinctive strength of Advisor Group.”