Fintech giant Broadridge Financial Solutions will acquire fiduciary giant Fi360, it was announced early Thursday.
The deal will allow both to offer new solutions that “will enable wealth advisors and intermediaries to grow their businesses while increasing fiduciary oversight.”
More specifically, Broadridge’s acquisition of Fi360 will enhance its existing retirement solutions by providing wealth and retirement advisors with fiduciary tools that complement its Matrix trust and trading platform, according to the companies.
The acquisition is also meant to strengthen Broadridge’s data and analytics tools and solutions suite that enable asset managers to grow their businesses by providing greater transparency into the retirement market.
Regulatory changes
“The shift to fee-based advice and imminent regulatory changes, including the SEC’s Regulation Best Interest, are increasing the scrutiny on firms to ensure that they are demonstrating prudent advisory practices,” Michael Liberatore, head of Broadridge’s Mutual Fund and Retirement Solutions business, said in a statement. “Our goal is to help firms stay ahead of this evolving regulatory landscape. Integrating Fi360’s solutions set with Broadridge’s leading wealth and retirement solutions will enable better support for clients as they build and maintain responsible fiduciary practices.”
“We’re delighted to become part of Broadridge,” Fi360 CEO Bill Mueller added. “Leveraging Broadridge’s scalable technology and position within the financial services network will enable us to offer the best possible solutions to help clients provide a fiduciary standard of care.”
In addition to its tech and analytics tools, Fi360 offers fiduciary education and training, and has over 11,000 active Accredited Investment Fiduciary (AIF) designees.
The acquisition is subject to the satisfaction of customary closing conditions, including regulatory approvals, and is expected to close in November.
Raymond James & Associates is acting as financial advisor to Fi360 in the transaction. Terms of the transaction were not disclosed.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.