Royal Bank of Canada (RBC) and JP Morgan have signed a definitive agreement pursuant to which RBC will acquire JP Morgan’s third party Registered Investment Advisor (RIA) Servicing Business (IAS).
Reportedly, when the transaction is complete, IAS will be renamed and becomes part of RBC advisor services, which is a unit of RBC wealth management’s US division. RBC advisor services specialises in providing custody and clearing services to third party RIAs.
John Taft, head of RBC wealth management, US Division, said: “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 US, 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.”
Mike Kavanagh, chief administrative officer & head, independent business channels at RBC wealth management, said: “The acquisition of IAS 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. The employees and clients of IAS represent a terrific strategic and cultural fit with our firm.”
However, the details of the transaction were not disclosed. The acquisition is subject to regulatory approvals and other customary closing conditions and is expected to close in the second quarter of 2010.
