Broker-dealer Raymond James is expanding its retirement services offerings by acquiring Seattle-based NWPS Holdings, Inc., doing business as NWPS and Northwest Plan Services, an independent 401k plan administrator.
The addition of NWPS allows Raymond James to expand its retirement plan administration services to advisors and clients, the company said in a Dec. 10 statement announcing the deal, expected to close before Dec. 31, 2020. Terms of the deal were not disclosed.
The timing is opportune, the statement said, as the industry prepares for new solutions created by this year’s SECURE Act, such as pooled employer plans (PEPs), and increases the investable market for employer and employee small business solutions. Per the SECURE Act, PEPs can be launched starting Jan. 1, 2021, although neither Raymond James or NWPS are currently registered as pooled plan providers by the Department of Labor.
The purchase of a plan administrator by a broker-dealer is somewhat unusual, but some are viewing such a move as a way for Raymond James to expand existing wealth management relationships via retirement plans.
“As one of the architects of modern financial planning more than 55 years ago, we are excited to add this important capability to our broad suite of advisor and client-centric retirement services,” said Scott Curtis, president of Raymond James’ Private Client Group. “We’re confident our advisors will benefit from NWPS’s excellence in this area, and that advisors considering Raymond James will find the capability compelling. Along with our industry leading technology solutions, focus on service and financial planning expertise, Raymond James continues to set a high bar.”
Raymond James Chairman and CEO Paul Reilly added that beyond being a good strategic fit, NWPS presents a good culture fit, as well. “NWPS’s values profile is very similar to ours. We are both people-oriented companies that place a high priority on excellent service,” Reilly said. “Adding this valuable retirement capability for our advisors and their clients while providing NWPS with Raymond James’ scale enables managing the end-to-end experience for plan sponsors and plan participants.”
The approximately 160 NWPS employees will be retained in the firm’s current locations. President and CEO Tim Wulfekuhle and his leadership team will continue to lead NWPS within the Raymond James organization. NWPS will operate as part of the Raymond James Private Client Group and enhance the existing retirement capabilities and solutions provided by the Institutional Fiduciary Solutions department.
“Finding the right partner for the continued growth of our business is gratifying and exciting for me and our team,” said Wulfekuhle. “Raymond James’ broad scale and capabilities, not to mention its outstanding reputation and focus on client service, provides our team and our clients the opportunity to build on success while staying true to our cultures.”
NWPS will continue to operate under its current name. The firm currently has over 400,000 participants with more than $35 billion in plan assets.
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
