After a tumultuous period, the Cetera Financial Group of independent broker-dealers says it is now a stand-alone entity and industry veteran Robert Moore is helping lead the company as nonexecutive chairman.
“We have completed Cetera’s transformation to an independent privately held organization,” said CEO Larry Roth, in an interview with ThinkAdvisor. “We are recapitalized and have a new board of directors. It’s fantastic!”
“Today, we have a clear go-forward ownership structure, a healthy balance sheet, significant additional capital to continue investing in advisor-support resources and a battle-tested management team energized to help our advisors and institutions grow,” explained Roth.
Its parent company, formerly RCS Capital and recently renamed Aretec (or Cetera spelled backward), has wrapped up its bankruptcy proceedings and now serves as a non-operating holding company – with Cetera as its sole operating business.
“I am personally so excited that Robert Moore accepted the position on our board,” said Roth. “I have known him for many years. There is no hesitation when I say there is no better person for the role. His passion and proven ability to think and act strategically are unparalleled in the industry.”
For his part, Moore – who was president and CFO of rival IBD LPL Financial (LPLA) before becoming CEO of asset manager Legal & General Investment Management America – says he is glad to be on the Cetera team.
“I’m pleased to be working with Larry and his team, who have proven themselves through a time of adversity,” said Moore in an interview. “It is an honor and privilege to work alongside them … With the team assembled, I feel the conditions for success are better than ever.”
Last week, the firm said that it will likely merge VSR Financial Services into Summit Brokerage Services and bring Investors Capital Corp. into Cetera Advisors. Several months ago, it disclosed plans to sell the Legend Equities Corp., which is focused on the retirement-plan market for educators.
As for what lies ahead for the company in light of the Department of Labor’s new fiduciary standard, Roth says his is upbeat.