Charles Schwab (SCHW) and Fidelity said they have stopped sales of products associated with Nicholas Schorsch’s real estate operations.
Schwab, which recently wrapped up its annual Impact conference for RIAs, said it suspended sales of both American Realty Capital and Cole REITs “pending further investigation.”
Fidelity explained that effective this past Monday, it no longer would “facilitate new purchase subscriptions for certain RCS [Realty Capital Securities] and Cole affiliated nontraded REITs.”
Meanwhile, TD Ameritrade (AMTD) says that it holds securities “in custody, including nontraded REITs. With regard to ARC, the current situation is evolving, and we’re monitoring developments,” according to a statement.
Pershing says it is “unable to speak about [custodial] clients” and would not confirm reports that it recently informed broker-dealers that the clearing firm would no longer facilitate sales of Cole products.