Author: rafferty

Billionaire Schorsch to Buy Investors Capital, Hatteras Funds

October 2, 2013
by John Sullivan, ThinkAdvisor

Real estate mogul Nicholas Schorsch continued his newsmaking run on Wednesday, with the announcement that one of his firms, RCS Capital Corp., has filed preliminary paperwork to purchase the independent broker-dealer Investors Capital Corp.

The news comes on the heels of a similar announcement on Monday that RCS would acquire the liquid alternative investment firm Hatteras Funds, as well as the announcement in early September that high-profile Advisor Group president Larry Roth would join Realty Capital Securities, the nontraded REIT broker-dealer and wholesaler arm of RCS Capital, as its CEO.

The announcement states that longtime Investors Capital Corp. president and CEO Tim Murphy and Hatteras Funds founder David Perkins will continue in their leadership roles with their respective firms.

Finra backs incentive comp disclosure rule

September 19, 2013
by Mark Schoeff Jr., Investment News

The board of the Financial Industry Regulatory Authority Inc. has approved a proposal that would require brokers to disclose the amount of incentive pay they received to switch firms.

Recruiting compensation of $100,000 or more — including signing, upfront or back-end bonuses, loans, accelerated payouts and transition assistance — would have to be disclosed to any customer who followed a broker to a new firm within one year of his or her transition. The broker also would have to disclose future compensation based on performance.

The reporting threshold was increased from the $50,000 level in the original Finra proposal released this year.

Firms would have to disclose to customers compensation paid to new recruits in the ranges of $100,000 to $500,000,

FINRA Broker Bonus Plan Would Be ‘Nonevent’ for Many Reps: Henschen

September 19, 2013
by Melanie Waddell, ThinkAdvisor

The Financial Industry Regulatory Authority announced Thursday that its Board of Governors approved a proposal requiring brokers to disclose recruitment compensation paid to them as an incentive to move to a new firm.

The regulator raised the threshold of payments that would need to be reported. The rule would apply to recruitment compensation — including signing bonuses, up-front or back-end bonuses, loans, accelerated payouts, and transition assistance — of $100,000 or more, and to future payments (trade-based or asset-based) contingent on performance criteria.

The proposal will be submitted to the Securities and Exchange Commission for review and approval. The SEC could then put the proposal out for public comment or approve it.