Ameriprise shopping Securities America

Apr 25, 2011 @ 4:30 pm

By Bruce Kelly

+ Zoom
((Photo: Zach Korb))

Ameriprise Financial is looking to sell its beleaguered independent broker-dealer, Securities America Inc.

In reporting its first quarter financial results this afternoon, Ameriprise management said it was looking to shed Securities America – the 17th largest independent broker-dealer in the industry according to InvestmentNews data, which it acquired in 1998. Ameriprise indicated the potential sale of the firm would not have an impact on its $150 million settlement with investors suing the firm over private placements that have gone bust.

“Management has decided to identify an appropriate buyer for (Securities America),” Ameriprise noted in the filing. “A sale would allow (Securities America) to focus on growth opportunities in the independent channel and would allow Ameriprise to devote its resources to the Ameriprise branded-advisor business. The sale process will not affect management's commitment to completion of the settlement on its current terms.”

Ameriprise's willingness to back Securities America through its recent settlement over the sale of Medical Capital and Provident Royalties private placements leaves the firm in a strong financial position to continue operations with no disruptions, said Janine Wertheim, a Securities America spokeswoman. "We believe there are many options that will afford enhanced opportunities and benefits to our advisers and employees," she said.

Securities America has about 1,800 affiliated reps who typically generate north of $400 million in gross revenue per year. (See full firm profile here.)

Ameriprise Financial's independent broker-dealer currently ranks as the second largest independent broker-dealer by total revenues, according to the new InvestmentNews broker-dealer rankings released today. View the latest financial rankings here.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

Building a practice for tomorrow's tomorrow

Advisers: it is time to take a long view of your practice. Check out some tips and strategies on how to do it (and why) with Tom Stefaniak of Pinnacle Wealth Management.

Video Spotlight

The Search for Income

Sponsored by PGIM Investments

Recommended Video

Path to growth

Latest news & opinion

T. Rowe Price steps up its game to serve financial advisers

The Baltimore-based mutual fund giant is more aggressively targeting financial advisers with a beefed-up wholesale crew and placement on custodial platforms.

The most important tax changes for 2018

The Internal Revenue Service issued inflation adjustments to more than 50 tax provisions for 2018.

Shift to Roth 401(k)s 'highly likely' part of tax reform: former Treasury official Mark Iwry

Mandated contributions to Roth accounts would likely only be partial, as opposed to having a full repeal of pre-tax accounts.

E*Trade acquiring custodian Trust Company of America

Discount broker buying second-tier custodian for $275 million.

Another thousand Dow points higher, and investors yawn

Market milestones keep falling like dominoes, with 51 records broken so far this year.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print