iA Financial to Expand Wealth Management Reach With RF Capital Acquisition

Canada-based insurance and wealth management group iA Financial plans to acquire RF Capital Group, a Canada-based wealth management company that operates under the Richardson Wealth brand, to expand its reach.

The deal will provide both companies with cost synergies and revenue synergies, according to a Monday (July 28) press release.

The cost synergies will include a consolidation of third-party providers; integration of corporate functions; and alignment of technology, artificial intelligence capabilities and digital platforms, the release said.

The revenue synergies will include three complementary business models that will accelerate the growth of the advisory network; combined open-architecture platforms that will create synergies across wealth management, capital markets, insurance and advisory services; and complementary regional office networks that will aid geographic growth, per the release.

The transaction is expected to close in the fourth quarter, subject to RF Capital common shareholders’ approval, regulatory approvals and other customary closing conditions, according to the release.

“The addition of RF Capital reinforces iA Wealth’s position as a leading nonbank wealth platform in Canada, offering additional reach in the independent full-service brokerage channel,” Stephan Bourbonnais, executive vice president of wealth management at iA Financial, said in the release.

Bourbonnais added that the deal will bring together complementary distribution models, boost iA Wealth’s advisory network assets under administration, and create “scale advantages in pricing, distribution, digital and brand strength.”

RF Capital President and CEO Dave Kelly said in the release that RF Capital’s advisers will continue to operate independently under the Richardson Wealth brand while being backed by the financial strength of iA Financial Group.

“By joining forces with iA, we unlock powerful opportunities across technology, product innovation and operational scale — enhancing the advisor value proposition through expanded capabilities and support,” Kelly said in the release.

IA Financial acquired Global Warranty, a Canada-based provider of vehicle warranties and other vehicle protection products, in February, saying that the deal would increase its presence in the used vehicle warranty market.

In August, iA Financial completed its acquisition of assets of the retail full-service investment broker division of Laurentian Bank Securities, saying the transaction involved 15,000 client accounts and some 25 advisors.

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