sidebar

Connect: 888-821-8107

Connect: 319-210-7700

Articles / Resources

financial advisors

Embattled Advisors Get Relief From RCS Bankruptcy Plan

16:40 21 January in In the News by rafferty

January 19, 2015 by Dan Jamieson, Financial Advisor   RCS Capital Corp.’s bankruptcy filing sounds like a bad development, but it may actually provide some relief to its embattled advisors. The $150 million capital infusion and reorganization plan, announced at the beginning of January, provides some light at the end of what has been a long, dark tunnel for the 9,500 reps who’ve been remarkably loyal since RCS Capital (RCAP) began unraveling in 2014 after an accounting scandal surfaced at an affiliated firm. The new money will allow the struggling holding company to restructure its debt while it goes private, as well as fund a retention deal for advisors. Cetera Financial Group, the large network of independent broker-dealers strung together by RCAP, will become the primary focus of the new entity. That’s good news. But the troops...

ThinkAdvisor logo

RCS Capital Reveals Backers of Last Resort; Lightyear-AIG Deal Talk Grows

17:30 09 January in In the News by rafferty

January 8, 2015 by Janet Levaux, ThinkAdvisor   The role of private equity firms in the IBD industry seems to be on an upswing RCS Capital (RCAP) has shared more details on how it is restructuring itself and enabling the Cetera Financial Group of independent broker-dealers to become a separate entity. Meanwhile, speculation continues as to what will happen to the AIG Advisor Group, with at least one recruiter saying some registered reps have been told it is poised to be sold to Lightyear Capital, Cetera’s previous owner. In regulatory filings on Wednesday, RCS Capital explains that private-equity firms Carlyle Investment Management and Fortress Investment Group, along with asset manager Eaton Vance Management, are letting the company forgo debt payments. These entities are poised to see the money they are lending Cetera turn into equity. This news...

financial advisors

LPL Puts Morrissey In Charge Of Recruiting In Shuffle

17:17 09 January in In the News by rafferty

January 7, 2015 by Dan Jamieson, Financial Advisor   In a management shuffle, LPL Financial will be putting managing director Bill Morrissey in charge of recruiting for all of the firm’s channels, and Andy Kalbaugh, also a managing director, will be in charge of advisor consulting services for the entire firm. The changes are set to take effect January 11, said LPL spokesman Peter Gilchrist. Morrissey, based in San Diego, is currently responsible for both recruiting and consulting services for LPL’s independent broker-dealers. Kalbaugh, based in Charlotte, N.C., has had the same role for the firm’s hybrid channel and institutional unit, which services banks and credit unions. The move will better fit the talents of both executives, Gilchrist said, and better support the firm’s 14,000-plus advisors. (LPL’s consulting services provide advisors with practice-management and succession-planning support.) Refocusing Morrissey on recruiting...

ThinkAdvisor logo

As Cetera Splits From RCAP, Will Its Advisors Split, Too?

23:38 05 January in In the News by rafferty

January 5, 2015 By Janet Levaux   Industry observers say the spinoff could make Cetera more attractive to buyers down the road Some 9,000 independent advisors affiliated with the Cetera Financial Group, along with plenty of industry watchers, are digesting the news that the firm is being separated from its troubled parent company, RCS Capital (RCAP) – which on Monday announced plans to file for bankruptcy and restructure its operations. “For sure, some of the Cetera advisors must be stunned,” said Mark Elzweig, a New York-based executive search consultant, in an interview with ThinkAdvisor. “I have to believe that many of these advisors were expecting a private-equity group … waiting in the wings, based on the latest industry rumors.” RCAP said Monday, however, that it is set to receive a $150 million capital infusion. Plus, Cetera intends...