Larry Roth, head of Cetera Financial Group, has resigned from the RCS Capital (RCAP) board of directors, the firm said Monday. Roth stepped down along with Peter M. Budko, who is part of a company being created by RCAP and Apollo Global.
“Neither Messrs. Roth nor Budko resigned as a result of any disagreement with RCS Capital or its board of directors,” RCS explained in a statement.
Instead, the company says, Roth will “concentrate his energies on his responsibilities as chief executive officer of Cetera Financial Group,” which includes more than 9,000 independent advisors and several independent broker-dealers, such as First Allied. Budko will focus on his responsibilities “in connection with the recently announced creation of AR Global Investments,” which distributes alternative investments.
RCAP stock has been battered during the recent market mayhem. It now trades near $1.90, after falling nearly 6% on Tuesday.
In August, RCS Capital said it planned to sell its troubled wholesale distribution unit to Apollo Global Management (APO) for $25 million and forming AR Global Investments. It also reported a 65% year-over-year drop in its sales of alternative products for the second quarter of 2015.