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Jon Henchen Tag

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The Chilling Effect of an Over-Zealous FINRA’s Gibbeting

16:59 11 November in Articles Written by Jon Henschen by rafferty

November 11, 2016 by Jon Henschen, as featured on ThinkAdvisor Displaying the bodies of executed criminals in public was a common practice in medieval times. The authorities did so to deter anyone from considering committing similar crimes. The practice, known as “gibbeting” refers to the mechanism from which the corpses of the criminals were hung when put on public display. FINRA also does gibbeting, although metaphorically, through FINRA BrokerCheck as well as the numerous press articles on advisor misdeeds we see daily. The trend over the last few years reveals that issues previously either not on FINRA’s radar or considered minor issues are now not only a big deal but potentially a career ender. Unintended Wrongdoing or Felony Offense? My intent is not to diminish the severity of legitimate wrongdoing, such as embezzling a client’s...

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Cetera’s Roth: RCAP Filing Is ‘Fresh Start,’ With Money for Rep Retention

14:54 29 March in In the News by rafferty

March 28, 2016 By James J. Green, ThinkAdvisor   RCS Capital Corp. (RCAPQ) announced Monday that some of the holding companies of its broker-dealers, and other debt holders, filed a prepackaged plan of reorganization under Chapter 11 with the U.S. Bankruptcy Court for the District of Delaware. Larry Roth, CEO of the IBD network Cetera Financial Group, which RCAP purchased in January 2014 and includes 10 broker-dealers, said in a statement that the filing “puts us in the home stretch to complete our transformation into a Cetera-only organization that is independent, well-capitalized and privately owned.” He said the reorganization, now scheduled for completion by May 2016 (pending bankruptcy court, regulatory and other approvals) “will truly be a fresh start for Cetera that will include significant additional capital for us.” That capital will help fund a...

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As Cetera Splits From RCAP, Will Its Advisors Split, Too?

23:38 05 January in In the News by rafferty

January 5, 2015 By Janet Levaux   Industry observers say the spinoff could make Cetera more attractive to buyers down the road Some 9,000 independent advisors affiliated with the Cetera Financial Group, along with plenty of industry watchers, are digesting the news that the firm is being separated from its troubled parent company, RCS Capital (RCAP) – which on Monday announced plans to file for bankruptcy and restructure its operations. “For sure, some of the Cetera advisors must be stunned,” said Mark Elzweig, a New York-based executive search consultant, in an interview with ThinkAdvisor. “I have to believe that many of these advisors were expecting a private-equity group … waiting in the wings, based on the latest industry rumors.” RCAP said Monday, however, that it is set to receive a $150 million capital infusion. Plus, Cetera intends...