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Nicholas Schorsch, executive chairman of RCS Capital (RCAP), made his initial foray into the independent broker/dealer space with his purchase of First Allied Securities and The Legend Group, with 1,500 advisors. But since then, Schorsch has been on an acquisition tear, shocking the industry with the number of deals he’s penned. Today, his empire consists of 11 broker/dealers and 9,700 advisors, Girard Securities being the most recent acquisition.
After months of uncertainty over how RCS Capital Corp. would structure its recently acquired independent broker/dealers, the firm announced plans last month to bring them all under Cetera Financial Group.
“From a branding standpoint, what we’ve decided to do is take advantage of the reputation and the fact that the market understands the brand Cetera Financial Group,” said Larry Roth, CEO of Cetera Financial Group.
Under the new structure, each firm would keep their current brands, senior management, and
other advisor-facing employees. But back-office and middle-office functions will be centralized.