Cambridge Investment Research announced Sept. 30 that it added FCG Advisors, whichhas $4 billion in assets under administration, as an enterprise firm. TheChatham, New Jersey boutique firmhas 19 licensed financial professionals and approximately $9 million inannual revenue. Fairfield, Iowa-basedCambridge’s AUA as of August was$114.1 billion, with 3,586 active financial professionals.
Although terms were not disclosed,Cambridge said it had acquired “ownership of limited assets of FCG Advisors”and that 40-year industry veteran JohnCombias, founder and managing director of the former RIA and broker-dealer,will maintain control.
Cambridge has defined enterprisefirms as advisors collaborating undershared leadership but operating underseparate marketing identities.
The IBD said it took a “small minority
stake” and it has been averaging roughly
one acquisition a year for the past five
years, “however, these opportunities
have become a larger focus.”
According to Cambridge President
and CEO Amy Webber, “FCG Advisor’s
values closely align with Cambridge. As
an enterprise, the firm is competitive-
ly positioned with access to expanded
resources, reduced risk, and a focus on
growth of their financial professionals
and their clients.”
FCG Advisors was founded in 1996
by Combias, who began his career with
Merrill Lynch. He graduated with a
bachelor of science degree from the
University of Vermont.
“We plan to further expand our
enterprise by taking advantage of
Cambridge’s solutions for growth and
guidance on best practices to further
elevate our success,” said Combias in a
statement. FCG Advisors had reviewed
several potential partners and decided
Cambridge was the best fit, according to
Joining him in leadership will be
Thomas Holevas, who has been reg-
istered with the Financial Industry
Regulatory Authority for two years, but
been with FCG since 2012 as chief oper-
ating officer and has worked in finance
for 30 years. He received his MBA from
the University of Chicago.
Also part of the leadership team isChristopher Glatz, who has been in thebusiness for 28 years, in 1996 joiningFCG, where he is operations manager.He began his career at John HancockFinancial Services. He received an MBAfrom Rutgers.
In early September, Cambridgeannounced a it would be implementingcloud-native technology from INVENT.us to redesign its CLIC digital businessenvironment for independent advisors.The purpose was to provide seamlessdata integrations between applicationsfor financial planning, CRM, tradingand client reporting while integratingmore directly into Cambridge’s coresystems, and offer a redesigned userinterface that simplifies navigation,reduces clicks and eliminates redundant data entry.
By Ginger Szala and Melanie Waddell
Cambridge Takes Stake in $4B Broker-Dealer
The IBD acquired “limited assets” of the boutique firm, while FCG founder
John Combias will maintain control.
FINRA Moves on BD Fee Hike,SEC Fines for Text Snafu
The Financial Industry Regulatory Authority plans to increase somefees it charges broker-dealers to copewith the onslaught of new regulatoryresponsibilities — namely RegulationBest Interest, the Consolidated AuditTrail as well as financial products suchas digital assets and increasingly intricate exchange-traded products.
On Oct. 2, FINRA’s Board of Governors
authorized the filing of the proposed
rule change with the Securities and
FINRA has filed the proposed rulechange to take effect immediately; however, implementation will not beginuntil Jan. 1, 2022.
FINRA designed the proposal toachieve the targeted revenue amountneeded to correct FINRA’s structuraldeficit — expected to be $225 million by2024 — with a package of specific fee