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Ameriprise Reveals Strategic Expansion Deal

By Alex Padalka April 25, 2017

Ameriprise Financial is acquiring the independent broker-dealer Investment Professionals, Inc., Ameriprise says in a press release.

IPI’s 200 advisors work within 140 banks and credit unions across 29 states and will form a new Ameriprise advisor channel to complement its existing network of around 10,000 advisors, according to the press release. Founded in 1992 and based in San Antonio, Texas, IPI had more than $8 billion in assets as of the end of 2016, Ameriprise says in the press release. Scott Barnes, IPI’s founder and chairman, will hold an advisory role within Ameriprise. Jay McAnelly, president and CEO of IPI, will also join Ameriprise and report to Pat O’Connell, executive vice president of Ameriprise Advisor Group, according to the press release. The deal — the terms of which Ameriprise doesn’t disclose — is expected to close in the third quarter of 2017, the firm says.

Ameriprise has been scooping up advisors from rival brokerages recently. Earlier this month, it snapped up four Morgan Stanley advisors collectively overseeing $523 million. In March, Ameriprise’s employee channel recruited eight advisors who collectively managed $644 million at Wells Fargo Advisors and UBS. And in February, Ameriprise’s independent channel recruited three advisors from Kestra Investment Services, while Ameriprise’s franchise channel added two advisors from MSI Financial Services and Woodbury Financial Services. The firm added 98 new advisors in the first quarter, according to a separate press release.

Ameriprise Financial also reported net revenues of $2.9 billion in the first quarter, a 5% increase over the year prior, according to a statement. Its advice and wealth management platform had a 21% increase in pretax operating earnings, Ameriprise says. The firm also had $3.9 billion in net inflows in fee-based assets, which now account for $213 billion out of the $500 billion on its advice and wealth management platform, according to the press release.

Ameriprise is also switching gears on its preparations for the Department of Labor’s fiduciary rule, which requires retirement brokers to put clients’ interests first and was scheduled to go into effect April 10. Following a 60-day delay of the rule, Ameriprise is “adjusting accordingly,” it says in the press release.