Wealth Management Rollup

by a searcher from INSEAD

3 years ago

We are considering a roll up in wealth management and are trying to understand the licensing impacts.

Can a subsidiary company roll up majority stakes in wealth management firms without compelling its parent company from becoming an SEC licensed broker-dealer itself?

1 like
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2 comments

searcher from INSEAD

Thanks much, Tim!

3 years ago | like reply | 0 likes

searcher from Southern Methodist University - Edwin L. Cox School of Business

Not a lawyer but believe only the entity providing advice would need to register with the SEC or state not an entity making acquisitions. Larger RIAs are required to register with the SEC - over $100 million I believe - and smaller firms with the state. Plus would imagine you’d be looking at independent RIAs also which are distinct from broker dealers. A good example of a firm doing this is focus financial.

3 years ago | like reply | 0 likes

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