Securities America, an independent broker/dealer owned by Ladenburg Thalmann Financial Services, has agreed to acquire certain assets of Foothill Securities, a Santa Clara-based advisor-owned independent broker/dealer, for an undisclosed amount.
The deal will add 210 advisors, $5.14bn in client assets and $38m in revenue to Securities America’s portfolio.
Foothill Securities president and CEO Steve Chipman said that the decision to sell its assets was taken due to rising compliance costs, especially in light of the new Department of Labor Fiduciary Rule.
“We selected Securities America, one of the country’s largest independent broker-dealers, because it will offer our advisors additional compliance support, better technology, broader asset management resources and practice management programs for the full practice life cycle,” Chipman said.
“At the same time, advisors will still receive the close-knit culture and personal attention of our branch support team. Securities America, like Foothill Securities, understands the importance of the advisor’s role in helping clients achieve their financial goals,” he added.
The deal is subject to regulatory approval.
Securities America CEO and president Jim Nagengast said: “We’re pleased Foothill Securities chose to partner with Securities America on this important decision. Foothill’s advisors can be confident they’re joining a broker-dealer with the right people and resources to help them promote and grow their practices.”