In the News

What Does First Allied’s New Parent Company Look Like?

16:48 20 June in In the News by rafferty

June 12, 2013 by Diana Britton, WealthManagement.com While Nick Schorsch, head of First Allied’s new parent company, is known for his work in the non-traded REIT space, he’s got even bigger plans for private equity firm. What can reps expect? Most people in the industry know Nick Schorsch, CEO of RCAP Holdings, as the head of non-traded REIT sponsor American Realty Capital, which has 51 percent market share in real estate direct investment and $10 billion in capital. So it came as a surprise to many when Schorsch announced his plans to acquire independent broker/dealer First Allied this morning. “It’s very surprising that it’s that type of firm buying [First Allied],” said Ryan Shanks, CEO and founder of Finetooth Consulting. Why would Schorsch and his four partners make such a big leap into the IBD space? Quite simply, he...

First Allied’s Surprise Sale to REIT Creates ‘Whole New Dynamic’ for BDs

16:37 13 June in In the News by rafferty

June 12, 2013 by Janet Levaux, AdvisorOne Flush with cash, more REITs could follow in buyer Realty Capital’s footsteps A real-estate group led by investor Nicholas Schorsch said early Wednesday that they planned to buy independent broker-dealer First Allied Securities from its private-equity owner Lovell Minnick Partners, which has owned a majority stake in the IBD for less than two years. First Allied’s buyer is RCAP Holdings, which owns Realty Capital Securities. It is led by Schorsch, William Kahane, Michael Weil, Peter Budko and Brian Block. "In 2007, my partners and I perceived an opportunity to build an open architected, wholesale broker-dealer to distribute best-in-class investment solutions," Schorsch said in a press release. "Today, RCAP Holdings takes another step forward,” he said. “We believe that the challenges and opportunities we witnessed in the wholesale distribution...

FINRA’s New Public Arbitrator Rules Make Little Sense: Compliance Pros

21:39 04 June in In the News by rafferty

June 4, 2013 By Melanie Waddell, AdvisorOne Arbitrators that have no understanding of the industry are ‘virtually incapable of making decisions that are objective and educated,’ says Henschen Compliance professionals are questioning the merits of new FINRA rules that prevent people associated with mutual funds and hedge funds from serving as public arbitrators. The Securities and Exchange Commission recently approved FINRA’s new rules, which become effective on July 1, and respond to concerns raised by “investor representatives” about such persons’ neutrality. In addition, FINRA amended the public arbitrator definition to add a two-year “cooling off” period before FINRA may permit certain individuals to serve as public arbitrators. Other excluded persons include investment advisors, attorneys who work in the securities industry, and directors and officers of firms in the securities industry. But Cipperman Compliance Services issued a statement...