For the second time in as many months, Securities America Inc. said it was acquiring the assets of another broker-dealer.
Securities America, part of the Ladenburg Thalmann Financial Services Inc. group of broker-dealers, said Monday it was acquiring the 67 advisers of Wall Street Financial Group, a small broker-dealer which opened in 1994. Those advisers produce close to $11 million in annual revenue and have $2.1 billion in client assets, according to the companies.
Last month, Securities America said it was acquiring the assets of a mid-sized broker-dealer,
Foothill Securities Inc. with 220 representatives under its roof.
Many small and mid-sized independent broker-dealers are
hurting, with executives from larger firms and consultants predicting a number of mergers similar to the recent Securities America deals.
Implementation next year of the Labor Department's fiduciary rule is soaking up resources at already-strapped firms, as the industry prepares for a fundamental change in how the securities industry is regulated. And the decline in sales of high-commission products, such as nontraded real estate investment trusts and variable annuities, has added to the pressure on profits at firms.
Wall Street Financial Group will operate as a branch named Evolution Financial Advisors. The firm's president and CEO, Victoria Bach-Fink, and vice president D. Robert Anderson, will join Securities America to supervise the branch.
“Securities America can provide [Wall Street Financial Group's] advisers vital compliance and fiduciary services,” Ms. Bach-Fink said
in a statement.
With the acquisitions of advisers of Wall Street Financial Group and Foothill Securities, Securities America will have completed nine transactions in eight years, adding more than 1,000 advisers with approximately $127.8 million in annual revenue and close to $15 billion in client assets, the companies said.
