In the News

Ladenburg Thalmann Possible Buyer in Securities America Sale

by Diana Britton and featured in Registered Rep
June, 2011:

Ladenburg Thalmann, parent company of Triad Advisors and Investacorp, has emerged as a potential buyer of Securities America, which Ameriprise Financial (NYSE: AMP) announced plans to sell in late April, according to several industry sources. One industry recruiter, who declined to be named, told Registered Rep. that people inside Securities America have named Ladenburg as a potential bidder. Another industry source, who preferred to remain anonymous, said Securities America reps were being told to stay put as Triad Advisors has put in a bid. Other sources said that Ladenburg has been on the acquisition trail and that a purchase of Securities America would make a lot of sense for the financial services firm.

Natalie Hadley,

Sale of Securities America: Advisors Should ‘Run,’ Recruiter Says

by Janet Levaux and featured in Advisor One
April, 2011:

With Ameriprise Financial poised to sell Securities America after a series of legal disputes and costly settlements associated with two sales of private placements, recruiters say that advisors now affiliated with the independent broker-dealer should proactively consider their options. And, for at least one veteran recruiter, this means moving quickly to a “safer, more secure” broker-dealer environment.

“I’d say run to the safest spot,” said Rick Peterson, a Houston-based recruiter, in a phone interview with AdvisorOne. “This could be to the largest IBD in the world, Linsco [LPL Financial], which has not had any of the issues” associated with private placement sales like Securities America.

The point, he says, is to be able to tell your client that you are moving to a larger BD to avoid potential problems that could occur when Securities America is sold.

What Will Life After Ameriprise Mean for Securities America Advisors?

by Donna Mitchell and featured in Financial Planning
April, 2011:

Its parent company, Ameriprise Financial, had just agreed to back a $150 million settlement between the broker-dealer and investors who had lost about $400 million from faulty, and in some cases, fraudulent, private placement investments. On Friday, a federal judge in Dallas is expected to rule on whether to accept the settlement. In March, executives for Securities America argued that the firm’s survival hinged on a $21 million settlement that Securities America had worked out with class-action plaintiffs.

But last Monday, Ameriprise Financial announced in its first-quarter earnings release that it would find a buyer for Securities America.

“We appreciate the many years Ameriprise has committed to our independent business model.