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Advisor Group’s BD Consolidation a ‘Sign of the Times’

14:44 12 May in In the News by rafferty

May 11, 2020 By Janet Levaux, ThinkAdvisor Industry watchers weigh in on the plan to merge three former Ladenburg Thalmann BDs into Securities America. Advisor Group said Monday that three of the five independent broker-dealers it bought recently from Ladenburg Thalmann will be merged into Securities America, the largest BD in this network. Industry watchers reacted to the news with a bit of a shrug, seeing it as part of the consolidation overall across the advisor landscape. Data compiled by the Financial Industry Regulatory Authority puts the latest BD tally at about 3,500, down from roughly 4,700 a decade ago. “This consolidation in the IBD space is another sign of the times,” said Tim Welsh, head of the consultancy Nexus Strategy. “With zero commissions, cash spreads at micro-levels and market lows, it is an incredibly...

Financial Advisor IQ a Financial Times Service

Be Careful of Leveraged B-Ds Like Cetera, Advisor Group: Recruiters

16:56 07 April in In the News by rafferty

April 7, 2020 By Mrinalini Krishna, Financial Advisor IQ Moody’s has sounded the alarm about the impact of the coronavirus pandemic on the financial health of certain broker-dealers, such as Advisor Group and Cetera Financial. Recruiters are cautioning FAs about these leveraged firms because their spending ability to support the growth of advisors may be limited. Both Cetera’s 2018 acquisition by PE firm Genstar Capital and Advisor Group’s 2019 buyout by PE firm Reverence Capital were financed through junk bonds. According to a Moody’s report in June 2019, as a part of the Reverence Capital deal, Advisor Group planned to raise $1.6 billion in debt through a series of debt offerings that were rated below investment grade. Similarly in August 2018 Moody’s noted that for the Genstar deal, Aretec planned to raise $1.015 billion...

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Advisor Group Nabs LPL Exec to Lead Wealth Unit

15:42 31 March in In the News by rafferty

March 31, 2020 By Janet Levaux, ThinkAdvisor The Advisor Group of independent broker-dealers, which completed its purchase of the Ladenburg Thalmann in mid-February, says it has hired a former executive from LPL Financial and made a series of other leadership shifts. Gregory Cornick is now Advisor Group’s president of Advice and Wealth Management. He was with LPL for the past six years and served as executive vice president, treasurer and head of Corporate Development and Advisor Financial Solutions. (LPL is self-clearing, while Advisor Group and Ladenburg firms are dual clearing.) But Jamie Price, president and CEO of Advisor Group, insists the role being assumed by Cornick was “on the docket” prior to the Ladenburg deal. “We want to continue to forge the senior leadership team to drive our growth strategy …, and that’s not defined by...