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Docupace Aims to Break Free From RCS Capital

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Docupace Technology says it is moving to separate itself from its troubled parent company, RCS Capital (RCAP).

RCS Capital, which is filing for bankruptcy this month, owns a majority stake in the maker of straight-through processing (or STP) technology for broker-dealers and registered investment advisors.

According to its Securities and Exchange Commission filing Monday, Docupace executives and MPAP Holdings are in talks with RCAP “regarding potential transactions … including without limitation a potential acquisition of the issuer’s interest.”

In November 2014, RCS Capital – which owns the Cetera Financial Group of independent broker-dealers – acquired a majority stake in the cybersecurity-focused firm from MPAP, which is owned by Docupace President Michael Pinsker.

“Essentially Docupace is strong and viable at the time,” said John DeVincent, Docupace’s executive vice president of marketing, in an interview with ThinkAdvisor. “Sales are going well, and we have an over 99% retention rate for existing clients.”

Management and staff, who number more than 70, are “staying in place” and working on “releasing new products and services,” DeVincent adds.

“Management is working hard to gain independence” following news about RCAP’s bankruptcy filings, a development that is “similar to that of other entities owned by RCS Capital,” he states.

(RCAP shares are no longer trading on the New York Stock Exchange and are priced at $0.01.)

Cetera Adds Client

Cetera Financial, which is led by Larry Roth, says it recently struck a deal to provide broker-dealer services to Utilities Employees Credit Union’s investment-management program.

“We are excited to welcome Utilities Employees Credit Union to our institutional services platform and look forward to helping them realize their growth aspirations,” said Catherine Bonneau, president & CEO of Cetera Financial Institutions, in a statement. “With the support of Cetera Financial Institutions, which provides customized investment solutions to more than 400 financial institutions nationwide, Utilities Employees Investment Services will focus on growth and on expanding its back-office support.”

Recently RCS Capital shared more details on how it is restructuring itself and enabling the Cetera Financial Group of independent broker-dealers to become a separate entity via a $150 million capital infusion.

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