Amid intense industry speculation that he could be pushed out, the head of Cetera Financial Group is telling its 9,000 affiliated industry reps to sit tight.
“We have been exploring certain potential future options for our leadership structure as we enter the post-strategic transformation phase of development for our company. We expect to be able to provide clarity on this within a matter of days,” Larry Roth explained in a memo sent to advisors Monday, according to a copy of the memo obtained by ThinkAdvisor from an industry source.
“In the meantime, please be assured that changes to our leadership structure — if any — will be driven by the best interests of the advisors and institutions we support, with a focus on our part of ensuring seamless and uninterrupted service,” Roth explained.
News about a possible shift at Cetera and its parent company, Aretec, began circulating Friday, after RIABiz published a story on the matter.
Roth referenced the story, calling it “a speculative piece,” in his memo to advisors, which was first reported by Investment News.
Cetera said in a statement on Monday, “As a matter of policy, we do not publicly discuss speculation or rumors related to our organization.”
This prompted further head-scratching about a possible reorganization and management shuffle at the IBD group.
“It seems to be [going on], since it is not being denied. That’s a pretty good indicator,” said recruiter Jon Henschen, in an interview on Monday. “If a company doesn’t deny news reports, it speaks volumes.”