Summit to Shut Brokerage, Convert to Cetera OSJ

Summit Brokerage, a Boca Raton, Fla.-based impartial dealer/seller that was acquired by Cetera Monetary Group’s earlier dad or mum firm, RCS Capital, in 2013, will shutter its b/d and roll up into Cetera Advisor Networks as an workplace of supervisory jurisdiction, or “area,” as Cetera calls them.

It turns into the newest in a string of comparable strikes by smaller IBDs, challenged with rising regulatory prices and burdened with lagging know-how or advisor-support packages. Summit, with its 450 advisors and $17.5 billion in consumer belongings, was already owned by Cetera's company dad or mum, however till now was operationally impartial.

It’s additionally one of many final holdouts to be rolled up right into a Cetera-branded agency. (First Allied, one other Cetera-owned b/d, nonetheless operates independently.) Girard Securities made the same transfer two years in the past, becoming a member of Cetera Advisor Networks as an OSJ as properly. VSR, J.P. Turner and Buyers Capital, which additionally have been acquired by RCS Capital previous to its chapter, have been additionally rolled up into Cetera companies.  

Summit was based in 1983 by President Marshall Leeds, a former advisor. “Annoyed by the dearth of assist I used to be receiving, I made a decision in 1983 to kind an impartial broker-dealer created for, and run by, former monetary advisors,” he says, on the agency’s web site.

Leeds will proceed to function president of the agency, in addition to regional director of the Summit area, reporting to Tom Taylor, head of Cetera Advisor Networks. The agency’s administration workforce will keep intact, as will its Boca Raton headquarters. The agency mentioned there will probably be minimal repapering of consumer accounts.

Cetera has no present plans to merge First Allied, Taylor mentioned.  

“We often consider technique, however the evaluation on First Allied is at present very completely different than that of Summit," he mentioned. "You will need to perceive that the choice to merge Summit was pushed by Marshall’s want to maneuver away from being the day-to-day operator of a broker-dealer."

“Eradicating the operational and regulatory challenges of working a dealer/seller will permit the Summit area to be totally centered on enhancing the advisor expertise, elevating our award-winning service mannequin and recruiting new advisors,” Leeds mentioned.

Simply this week, the Monetary Trade Regulatory Authority ordered Summit to pay $880,000 in fines and restitution. The regulator claims the b/d did not overview warnings a few consultant who was making an extreme variety of trades and boosting fee charges within the course of. The dealer, named solely as “CJ” within the motion, had been barred in a separate FINRA motion.

Summit has been extremely rated in previous years for advisor satisfaction, in accordance with WealthManagement.com’s Impartial Dealer/Seller Report Card.

Cetera has undergone a number of adjustments up to now yr. Final summer season, non-public fairness agency Genstar Capital acquired a majority stake within the agency, and put in a brand new board of administrators.

Earlier this yr, CEO Robert Moore stepped down from the highest spot at Cetera, citing a health-related situation. Extra not too long ago, the agency’s head of enterprise improvement accountable for progress initiatives, Michael Murray, who left LPL final Could, was lifted out of Chief Advertising Officer Michael Zuna’s group and is now reporting on to President Adam Antoniades.