RCAP has targeted a total of $57 million to $65 million in cost savings following its acquisition of Cetera Financial Group this year. Some $4.3 million to $6 million in savings is expected to come from a better clearing deal. Officials said Monday they were on track to meet that goal by the beginning of 2015.
Including its pending acquisitions of VSR Group and Girard Securities, RCAP has 9,700 advisors with $236 billion under administration.
RCAP executives are still on the hunt for more broker-dealers. Larry Roth, CEO of Cetera Financial Group, said the company is targeting smaller firms that can be tucked into RCAP’s infrastructure.
Small firms can be integrated quickly with attractive profit margins, Roth said on the webcast Monday. “Especially if they’re clearing through Pershing with the new [clearing arrangement], it’s even better.”