J.W. Cole set to go nationwide with deal

New firm has 400 independent-contractor reps

Nov 25, 2012 @ 12:01 am

By Dan Jamieson

+ Zoom
(Thinkstock)

Tampa, Fla.-based broker-dealer J.W. Cole Financial Inc. is acquiring Financial Advisers of America LLC of Carlsbad, Calif., the firms said last week.

J.W. Cole, which has about 300 independent-contractor representatives, will add 100 from FAA.

Terms weren't disclosed, but no outside investors played a role, said John Carlson, founding principal at J.W. Cole.

The acquisition must be approved by the Financial Industry Regulatory Authority Inc.

DUAL HEADQUARTERS

The combined firms will operate under the J.W. Cole name, with dual headquarters.

The merger will increase scale and create a national footprint while maintaining a more family-style business than the national broker-dealers, principals at the firms said.

About two-thirds of the brokers affiliated with J.W. Cole are east of the Mississippi, and about 90% of FAA's reps are west of that divide.

Key to the deal was the good cultural fit, said FAA chief executive Jodi Johnston.

“As we started to get to know each other, through networking and through our [joint clearing firm] National Financial [Services LLC], we heard a lot about each other, compared notes, became friends and found [we were] so similar” in attracting advisers who want a smaller, independent operation, she said.

“Many are tired of the really big corporate B-Ds,” Ms. Johnston said.

Smaller firms with a national reach are “what's missing in the industry,” Mr. Carlson said. “The only press you get about small firms is [when they are] going out of business,” he added.

“Private-equity and venture capital [ownership] just doesn't cut it,” Mr. Carlson said.

djamieson@investmentnews.com Twitter: @dvjamieson

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

Women's retirement needs and the opportunity they present for advisers

Assistant managing editor Lorie Konish speaks with contributing editor Mary Beth Franklin about the unique planning considerations for women as they prepare for income needs later in life.

Latest news & opinion

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.

Is LPL's deal sweet enough for NPH's 3,200 reps and advisers?

They will have to decide if the signing package they are being offered by LPL makes sense. A lot is hanging in the balance.

Eduardo Repetto to leave Dimensional Fund Advisors

Gerald O'Reilly, currently co-CIO, will take over as co-CEO with David Butler.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print