RCS Capital (RCAP) says some broker-dealers have resumed sales of products distributed by its wholesale unit Realty Capital Securities, though it won’t name specific broker-dealers that have done so.
On Monday, RCAP issued a press release stating that 51 selling agreements have been reinstated. It has a total of 1,020 active selling agreements in place with more than 250 firms that distribute alternative investments, such as nontraded real estate investment trusts.
“We have consistently communicated to the market our belief that the suspensions of certain of our ongoing selling agreements were of a temporary nature. The reinstatement of these agreements and this initial resumption of sales are confirmation of this belief,” said Realty Capital Securities CEO Bill Dwyer, in a statement. “RCS Capital enjoys strong relationships with our broker-dealer network, and strongly believes firms clearly understand the value of RCS Capital-distributed products and continue to work constructively with us, just as we are eager to provide them with access to the quality products they demand.”
As of last week, several major broker-dealers that had previously stopped selling nontraded REITs associated with its sister company American Capital Realty Properties (ARCP), which disclosed $23 million in accounting errors in late October, told ThinkAdvisor that they had not yet changed their policy.
Multiple independent broker-dealers — including Cetera Financial, which is part of RCS Capital — have suspended sales of Cole and AR Capital nontraded REITs, including LPL Financial (LPLA), Advisor Group, National Planning Holdings, Cambridge Investment Research and Securities America. Charles Schwab (SCHW) and Fidelity also stopped sales of products associated with Nicholas Schorsch’s real estate operations.