RCS Capital (RCAP) Will Shutter Wholesale Distribution Business, Sell Mass. Securities Division

RCS Capital (NYSE: RCAP) announced a series of actions designed to further accelerate its strategic repositioning to focus on the independent retail advice business, Cetera Financial Group ("CFG"), rationalize its capital structure, increase financial flexibility and position the Company for long-term growth.

Realty Capital Securities to Wind Down Wholesale Distribution Business

As part of its previously stated plan to transition RCS Capital to a retail-focused entity, the Company's Board of Directors (the "Board") has authorized plans to wind down the operations of Realty Capital Securities wholesale distribution business. The process, which will begin today, is expected to be completed by the end of the first quarter 2016. Specific questions related to the Wholesale Distribution business from broker dealers, due diligence analysts, vendors, financial advisors and program investors should be emailed to [email protected].

Reaches an Agreement to Settle with Massachusetts Securities Division on Administrative Complaint

The Company also announced it has reached an agreement to settle with the Massachusetts Secretary of the Commonwealth, Securities Division (the "Division"), regarding the Division's complaint against Realty Capital Securities, LLC ("RCS") alleging that RCS violated the Massachusetts Uniform Securities Act and the regulations thereunder in connection with shareholder proxy solicitation process in the Commonwealth of Massachusetts. Under the agreement, RCS will pay a fine. Furthermore, RCS has decided to voluntarily withdraw its broker-dealer license in Massachusetts and all other state and federal jurisdictions.

Mark Auerbach, the Company's non-executive Chairman commented, "Today's actions represent the continued execution of our previously announced strategic plan to reposition the Company as a pure-play, Cetera-only focused retail advice business. These latest steps, which are extremely difficult but necessary, along with our recently announced capital raise, lender modifications and other initiatives, will enable us to further rationalize our business while we continue to work with Lazard to explore options to raise additional capital and complete further asset divestitures. After careful consideration, the Board concluded that the wind down of the Realty Capital Securities wholesale distribution business was essential in our continuing efforts to create a leaner, more efficient organization dedicated to realizing the full earnings potential of Cetera Financial Group. While we still have more work to do, we consider today's actions important steps forward in this ongoing strategic process."

Additional details relating to the matters set forth above will be set forth in a filing with the U.S. Securities and Exchange Commission in the coming days

You May Also Be Interested In

• LivePerson adjourns stockholder vote on SoundHound AI merger to Sept. 2
• Victoria's Secret adds former Starbucks tech chief to its board
• Wolfe remains "broadly bullish on AI semis stocks", names Top Pick