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Foreside Financial Acquires Compliance Advisory Services

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Foreside Financial Group LLC, which provides regulatory and compliance service offerings to broker-dealers and investment advisors, has acquired Compliance Advisory Services, a regional financial institution consulting firm based near Altanta. Terms of the acquisition were not disclosed.

“This acquisition is a fundamental step in a series of rollups that will keep us at the forefront of the regulatory consulting landscape,” said David Whitaker, president of Foreside, in a statement. “It gives us the opportunity to expand our wide range of partnership offerings to a diverse range of clients.”

Foreside’s purchase of Compliance Advisory Services is its second acquisition since private equity firm Lovell Minnick Partners acquired a majority interest in February 2017 and its second acquisition this year. In February the Portland, Maine-based firm, which has offices in seven other U.S. cities, announced it was acquiring NCS Regulatory Compliance, which provides outsourced compliance and regulatory solutions for RIAs and BDs.

(Related: PE Firm to Buy Financial Compliance Outsourcer)

The acquisition will introduce Foreside’s various compliance consulting solutions, including proprietary compliance technology, to all current CAS clients and allow Foreside to continue to offer CAS’s comprehensive service packages and  maintain the dedicated consultant model that characterizes CAS’s hands-on consulting approach.

“We are deeply excited to be working alongside the Foreside team and feel Foreside is well-positioned to continue providing in-depth compliance service offerings to our clients,” said LaVerne White, owner of CAS, in a statement. “Not only will this partnership allow our clients’ needs to be met in a more holistic capacity, but it will also offer an expansive level of support from a leading compliance firm.”

Foreside distributes more than $1 trillion of product through its 20 limited purpose broker-dealers, but advisory firms are the biggest users of its platform, according to Mark Alcaide, senior managing director at Foreside, and former chief operating officer of NCS. The firm serves a wide range of advisory firms in terms of assets under management, ranging from less than $100 million to under $10 billion. The “sweet spot,” says Alcaide, are firms with AUM between $750 million and $3 billion.

— Check out Advisors, Beware! Examiners Are Watching Ever More Closely on ThinkAdvisor.