Wealth Management Rollup

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September 16, 2021

by a searcher from INSEAD in Destin, FL 32541, USA

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?

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Reply by a searcher
from Southern Methodist University in St. Louis, MO, USA
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.
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Reply by a searcher
from INSEAD in Destin, FL 32541, USA
Thanks much, Tim!
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