Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
ThinkAdvisor

Industry Spotlight > Broker Dealers

Cohen’s Point72 Takes RCS Stake as Regulators Circle

X
Your article was successfully shared with the contacts you provided.

The family office for billionaire Steven A. Cohen disclosed a bigger stake in RCS Capital Corp., which last week said it was contacted by U.S. regulators after accounting errors were disclosed at American Realty Capital Properties Inc.

Point72 Asset Management LP said it took a 5.1% passive stake in RCS, which operates broker-dealers, in a Nov. 14 regulatory filing.

RCS said it’s in contact with the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority as part of its regular operations. The company “and its subsidiaries have continued to respond to ongoing verbal inquiries, requests for correspondence, information and discussions” with regulators, including with respect to the ARCP disclosure, RCS said in a quarterly report filed with regulators Nov. 14.

RCS’s shares have fallen 38% since ARCP disclosed accounting mistakes last month, partly because of concern over damage to its business selling nontraded real estate investment trusts sponsored by AR Capital LLC. That company was created by Nicholas Schorsch, RCS’s chairman and biggest shareholder, and chairman of American Realty Capital Properties as well.

Brokerage firms including LPL Financial Holdings Inc. have said they were suspending sales of some products tied to the New York-based companies.

RCS has sought to distance itself from accounting errors at ARCP. Some brokers have lifted suspensions on investment products RCS sells, and the company expects most of the others will be reinstated by the end of the year, Michael Weil, the company’s chief executive officer, said on a Nov. 13 conference call.

— Check out Realty Capital Says Cetera Spinoff ‘On the Table’ on ThinkAdvisor.


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.