In the News

Another Key Executive Departs LPL

January 23, 2015

Bruce Kelly, Investment News

LPL Financial’s top recruiter on the East Coast, James Sorey, left the firm earlier this month, continuing a brain drain at the nation’s largest independent broker-dealer.

Mr. Sorey was senior vice president, East region manager, for LPL. He was based in Charlotte and reported to LPL’s head of recruiting, executive vice president Steve Pirigyi.

“We wish James well,” said LPL spokesman Brett Weinberg, who declined to comment further about Mr. Sorey’s potential replacement.

Mr. Sorey is expected to take a position in February at an insurance company owned broker-dealer, Lincoln Financial Network, according to an industry source who asked not to be named.

Cambridge Joins Ranks of IBDs Abandoning Schorsch

November 6, 2014

Janet Levaux, ThinkAdvisor

The group stops sales of three Cole REITs following accounting and other issues at American Realty Capital

Cambridge Investment Research has joined a growing number of independent broker-dealers suspending sales of REITs tied to American Realty Capital (ARCP).

“Following a recommendation by our due diligence committee, and with the best interests of advisors in mind, we have temporarily suspended sales in three Cole products with the expectation there will be more clarity in the coming weeks,” the IBD said in a statement Thursday shared with ThinkAdvisor.

Cambridge has some 2,500 affiliated independent reps.

On Wednesday, Cetera Financial Group — part of RCS Capital, of which Nicholas Schorsch is chairman — asked its affiliated advisors to suspend sales of three Cole nontraded REITs.

AIG’s Four B-Ds Suspend ARCP REIT Sales

NOVEMBER 4, 2014

By Dan Jamieson, Financial Advisor 

The AIG Advisor Group of broker-dealers has suspended the sale of two American Realty Capital REITs.

“Due to recent disclosures of accounting irregularities made by American Realty Capital Properties, AIG Advisor Group has chosen to temporarily suspend sales in two Real Estate Investment Trusts (REITs) effective immediately,” said Advisor Group spokeswoman Linda Malamut in an e-mail.

The products involved are the American Realty Capital New York City REIT, and the Phillips Edison-ARC Grocery Center REIT II.

The four Advisor Group broker-dealers are Royal Alliance Associates,  FSC Securities Corp., Sagepoint Financial and Woodbury Financial Services. In total, the firms have more than 6,000 advisors.

The problems at American Realty surfaced last Wednesday when the company said it had fired its chief financial officer and chief accounting officer and would restate earnings for the first half of this year because of “intentional”