Now that the acquisition of JP Morgan Securities Inc.’s RIA custody channel is complete, RBC Advisor Services is aggressively growing its business by attracting financial advisors to its custodial niche. According to RBC seeks custodial niche on high end, Jed Horowitz states,
“RBC Advisor Services…is equally interested in attracting independent advisors with $200 million or more of client assets under management and retail brokers with sizeable books of business who are migrating to the independent channel.”
While RBC will not attempt to compete with custodial giants such as Charles Schwab and TD Ameritrade, but will be able to provide its clients with additional services and investments they need through its parent bank company as well. Michael Kavanagh, chief administrative officer of RBC Wealth Management and head of its independent business channels, said,
“We started out by providing advice to high-net worth clients and the services and investments that they need. We are now bringing that expertise to RIAs.”
RBC is also offering financial advisors another option that should appeal to brokers who want to be independent without having to breakaway. They will have a “quasi-independent” channel that offers high payouts, but the advisors will have to pay for some of their own expenses as well.