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

Featured video

Events

The client of the future

Your clients of tomorrow want you to stay ahead of the curve with technology. Some of the industry’s top young advisers and thought leaders explain what they think tomorrow’s clients will need.

Latest news & opinion

Will Jeffrey Gundlach's Trump-like approach on Twitter work in financial services?

The DoubleLine CEO's attacks on Wall Street Journal reporters is igniting a discussion on what's fair game on social media.

Fidelity wins arb case against wine mogul but earns a rebuke from Finra

In the case of investor Peter Deutsch, Fidelity doesn't have to pay any compensation, but regulator said firm put its interests ahead of his.

Plaintiffs win in Tibble vs. Edison 401(k) fee case

After a decade of activity around the lawsuit, including a hearing before the U.S. Supreme Court, judge rules a prudent fiduciary would have invested in institutional shares.

Advisers get more breathing room to make Form ADV changes

RIAs can enter '0' in some new parts of the document before their annual filing next year.

Since banking scandal, Wells Fargo advisers with more than $19.2 billion leave firm

Despite a trying year, the firm has said it will sweeten signing bonuses for veteran advisers.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print