Less than three months after its acquisition of Folio Financial, Goldman Sachs is selling the self-directed retail brokerage segment of the business to Interactive Brokers.
The deal, which is expected to close in January, underscores Goldman’s specific commitment to the wealth management channel by keeping Folio’s custody and clearing business, according to Mark Bruno, managing director at Echelon Partners.
“From a wealth management perspective, this is pretty consistent with everything Goldman has been doing to build out a bigger presence in the RIA space,” he said. “They are definitely prioritizing the RIA space and looking at ways to expand their reach.”
Bruno cited the 2019 acquisition of United Capital for $750 million as a sign of Goldman’s increased focus on wealth management.
Terms of the latest deal were not disclosed. Goldman representatives could not be reached for comment.
For Interactive Brokers, the deal brings approximately 70,000 current Folio self-directed customers, and about $3 billion in client equity, according to a company spokesperson. At the end of November, Interactive Brokers had 1.037 million client accounts, which is 52% higher than the prior year, and client equity climbed to $268.7 billion, a 61% increase year-over-year.
“While most of our growth has historically been organic, Interactive Brokers saw this opportunity as a way to expand the number of retail investors we serve and increase our assets,” said Kalen Holliday, a director at Interactive Brokers.
Regulators found Bank of America's monitoring software had a known flaw Merrill left uncorrected for years.
While AI has become a go-to research tool for affluent investors, new HSBC research suggests human advisors remain the deciding voice when investment decisions are made.
A 5-4 ruling preserves the Federal Reserve's independence for now, but the legal fight over presidential removal power is far from settled.
For years, large firms have been facing penalties and questions from regulators over interest rates for clients’ cash accounts.
Market volatility can be stressful, but it also represents opportunity for advisors and their clients.
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
