Securities America Inc., a large broker-dealer that is now part of the Advisor Group network, lost a giant branch office with $1.5 billion in client assets, 50 advisers and at least two dozen offices across the country to rival Cambridge Investment Research Inc.
The two top executives of Cooper McManus Wealth Management, Arthur Cooper, managing director, and David McManus, senior wealth manager, switched their registration from Securities America to Cambridge on March 27, according to their profiles on BrokerCheck.
Cambridge confirmed the move this afternoon. "We are pleased to welcome this group and their mix of hybrid and fee-only financial professionals reflecting approximately $1.5 billion in assets under administration," a Cambridge spokesperson, Cindy Schaus, wrote in an email.
An Advisor Group spokesperson, Joseph Kuo, did not respond to a request for comment.
Based in Irvine, Calif., Cooper McManus has about two dozen offices of reps and advisers under its umbrella across the country, according to the company's website. The firm's most recent Form ADV, on file with the Securities and Exchange Commission, reports that Cooper McManus has $989 million in client advisory assets, with about two-thirds held in custody at TD Ameritrade Clearing and the remainder at Fidelity's National Financial Services.
Advisor Group has seen some large groups of financial advisers walk out the door recently. Last fall, LPL Financial reeled in three teams with close to $1.5 billion in client assets from Advisor Group broker-dealers.
Cooper McManus generates annual total revenues, known as gross dealer concession, of $15 million, Cooper said in an interview Friday afternoon. Advisers representing about 90% of that amount have committed to moving to Cambridge.
Owned by private equity manager Reverence Capital Partners, Advisor Group recently finished its acquisition of Ladenburg Thalmann Financial Services Inc., a network of broker-dealers that includes Securities America.
"We were 21 years with Securities America," Cooper said. "With private equity [owners] coming in, I became extremely cynical about promises of no changes. No disruptions to service seemed a stretch."
“Today’s actions send a clear message that even the biggest financial institutions are not above the law,” said Treasury Secretary Scott Bessent.
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