In the News

Embattled Advisors Get Relief From RCS Bankruptcy Plan

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,

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

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.

LPL Puts Morrissey In Charge Of Recruiting In Shuffle

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,