Independent broker-dealer Royal Alliance is acquiring Signator Investors from John Hancock — a move that could double its size to as many as 3,600 financial advisors and other professionals.
“Given our cultural similarities, the ease of the transition, and the strength of our offering, we anticipate a large number of Signator’s advisors will transition to Royal Alliance once the deal is finalized later this year,” according to Royal Alliance President and CEO Dmitry Goldin.
The news didn’t come as a huge surprise to industry watchers.
“This deal represents two trends,” explained Tim Welsh, head of Nexus Strategy. “First, the continuation of insurance companies exiting the independent broker-dealer marketplace. And two, the consolidation of mid-market players to try and get scale to weather the storms of operating cost increases, technology investments needed and compliance requirements to remain viable.”
Signator, a dual-registered broker-dealer and investment advisor, has roughly $50 billion in client assets. Royal Alliance is part of the Advisor Group of IBDs, which includes a total of 5,000 registered representatives and $190 billion in client assets.