Advisor Group has announced plans to consolidate three of Ladenburg Thalmann’s five broker-dealers. The news comes just three months after the Phoenix-based Independent Broker-Dealer acquired Landenburg.
In a press release last week, Advisor Group announced that in July, Investacorp, Securities Service Network (SSN) and KMS Financial Services will be closed and folded into Securities America.
The process will occur in phases, beginning with Investacorp in July. Advisor Group stated that the process will not require repaparing of client accounts, though some accounts at KMS will require consent letters from clients to authorize transfers. Advisor Group expects to complete the process by the end of the year.
The merging of the three broker-dealers will leave Advisor Group with six standalone firms: Securities America, Triad Advisors, FSC Securities Corporation, Royal Alliance Associates, SagePoint Financial, and Woodbury Financial Services. In total, the firm has about 11,500 advisors who oversee $450 billion in client assets.
The decision followed a comprehensive review of operations that included feedback from “financial professionals,” said Jamie Price, CEO of Advisor Group, in a statement.
Meanwhile, Jim Nagengast, CEO of Securities America, stated the consolidation is a “natural outgrowth” of a strategy that had begun years ago at Ladenburg.
