Cetera Financial Group, which owns the independent broker-dealer industry’s largest network group, is closing down one of its broker-dealers, J.P. Turner & Co., a firm that has recently become known as a large seller of alternative investments such as nontraded REITs. Cetera is reportedly inviting about half of the current 300 J.P. Turner & Co. advisers to join another of its firms, the remaining investors are allegedly expected to leave the firm by the end of October.
By shuttering the broker-dealer, advisors will be able to “to more rapidly access” Pershing, according to the Cetera statement.
The company is continuing to claim that the move “is not part of a broader consolidation strategy.” Larry Roth, the CEO of Cetera, was quoted by Investment News in saying “We emphasize that this transition is not part of a broader consolidation strategy, but rather, is intended to address a unique and clear demand from a significant number of J.P. Turner’s advisers.”
J.P. Turner & Co. has 36 disclosure items, including 24 regulatory actions and 12 arbitrations, according to its BrokerCheck report. In light of this, shutting it down is seen as a brilliant branding move by others in the industry. Howard Diamond, managing director of Diamond Consultants, is quoted in a Financial Planning article saying “Summit is the better name, it’s much more attractive to advisors. This was a smart thing for Cetera to do.”
The foregoing information, which is all publicly available, is being provided by The White Law Group.
The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.