RBC enters U.S. advisor service market

Royal Bank of Canada has struck a deal to acquire the third party registered investment advisor servicing business of J.P. Morgan.

“Growing and enhancing RBC Advisor Services is a strategic priority for our firm, and this acquisition represents an important step in our quest to become the finest investment advisory and wealth management firm in the U.S.,” said John Taft, head of RBC Wealth Management, U.S. division. “Across our multiple business channels, we are focused on serving the high-net-worth segment of the marketplace and IAS shares that focus for RIAs.”

The unit will be renamed and become part of RBC Advisor Services. RBC Advisor Services specializes in providing custody and clearing services to high performing third party RIAs.

The firm has recruited more than 300 financial consultants this fiscal year, making it the most successful year to date for the company.

“The acquisition will expand the breadth and depth of our offering to highly successful third party RIAs, and will enhance our competitive position in the high end of the RIA custody marketplace,” said Mike Kavanagh, chief administrative officer and head of independent business channels at RBC Wealth Management. “The employees and clients of IAS represent a terrific strategic and cultural fit with our firm.”

Terms of the transaction were not disclosed, and the deal remains subject to regulatory approval. It is expected to close in the second quarter of 2010.

(09/29/09)

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.