The ongoing fight for control of giant branch offices registered at independent broker-dealers rolled into 2023 as Cetera Financial Group announced this week that it had recruited an office with $2.5 billion in assets from rival Securities America Inc., the largest broker-dealer in the Advisor Group network.
The office, The Patriot Financial Group, is based in a suburb of Boston and works with 70 financial advisors, who moved their securities and industry registration to Cetera Financial Specialists starting last month, according to a search of executives' BrokerCheck reports.
According to its Form ADV, about $1.15 billion of The Patriot Financial Group's assets are parked at its registered investment advisor, making it a large RIA enterprise for a brokerage firm.
2022 saw a significant development in the consolidation of the wealth management industry: Independent broker-dealers began competing with private equity-backed aggregators of registered investment advisors to purchase or invest in giant offices of advisors, with several IBDs making investments in giant branch offices of advisors already registered with the firm.
Such offices are often referred to as offices of supervisory jurisdiction, or Super OSJs.
"The recruiting Super OSJ model is a double-edged sword," said Jodie Papike, president of Cross-Search, a recruiting firm. "A lot of broker-dealers support the recruiting at the branch, but the firms have to keep the heads of those Super OSJs happy — or run the risk they move to another brokerage firm."
"Like Cetera, we are agnostic about how our advisors affiliate their business to deliver the best service, solutions and guidance," Michael Tashjian, CEO of The Patriot Financial Group, said in a statement. "We believe that this model provides a powerful combination of options that will serve our advisors and their clients well for years to come."
At the end of last year, Cetera Financial Group controlled about $322 billion in assets, according to the company.
A drop in interest rates and easier access to capital has reignited appetite among private equity-backed consolidators, who accounted for 53% of RIA deals so far this year- their highest share since 2021 according to DeVoe & Company.
Also, Advisor CRM announces a new data integration partnership to ease the pain of client onboarding.
Meanwhile, Merrill Lynch intends to continue building its alternative investment platform for wealthy clients.
The co-founder of IFG discussed with InvestmentNews the unique opportunity that remaining independent offers to build a successful firm.
Three industry leaders will join the hybrid RIA's president and LPL alum, Andy Kalbaugh, to help guide its organic and merger-based growth strategy.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
