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Cetera Advisers Consider Leaving in Light of RCS Capital Woes

By Erwin J.Shutak, Esq.  of Shustak Reynolds & Partners, P.C. posted on Wednesday, December 30, 2015.

As Cetera Financial Group’s  parent, RCS Capital, implodes under the weight of accounting irregularities and increasing regulatory scrutiny, many Cetera advisors are considering whether to stay the course or jump ship on Cetera completely. Industry recruiters say they are speaking to more and more Cetera advisors who feel they must make a decision and soon.

RCS Capital, also known as RCAP, is furiously trying to reinvent itself after suffering one publicity nightmare after another resulting from accounting scandals and increased regulatory investigations. RCS recently sold off its non-adviser assets, and is working with investment bank Lazard Freres to raise capital and restructure the firm. RCS has laid off 200 employees and its stock recently traded at 31 cents, down from a high of $12 just one year ago. 

RCAP has a new CEO, Larry Roth, who is tasked with the unenviable task of turning around the scandal plagued company.

Cetera is one of the largest independent broker-dealers, with 9,500 registered reps. Recently, a group of 28 advisors with $500 million of assets under management left Investors Capital Corp., a Cetera firm, and joyed Voya Financial Advisors, Inc.

Shustak Reynolds & Partners, P.C. has extensive experience in the area of securities and financial services law and routinely counsels investors, brokers, broker-dealers and registered investment advisors. For more information  contact Erwin J. Shustak, Esq, Managing Partner, at 619.696.9500 or via email at [email protected] or visit our web site at www.shufirm.com

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