Cetera purges board after being bought by Genstar Capital

Cetera purges board after being bought by Genstar Capital
Former CEOs of eMoney Advisors and Lincoln Financial Network among those replaced with those having ties to the new private equity owner.
OCT 11, 2018

Cetera Financial Group said on Thursday morning that it had overhauled its board of directors, with its new board reflecting the recent sale of the large brokerage network to Genstar Capital for $1.7 billion. Gone are Bob Dineen, the former head of Lincoln Financial Network, and Edmond Walters, the former CEO of eMoney Advisors. Both served on the board of Aretec, the holding company that controlled Cetera after it emerged from bankruptcy in May 2016. Mr. Dineen was chairman and Mr. Walters a director. A network of six broker-dealers with close to 8,000 reps and financial advisers, Cetera Financial said in July it was to be acquired by Genstar, a private equity manager. The deal closed last month. The new board closely aligns the two companies. Robert Moore, the CEO of Cetera Financial Group, remains on the board, according to a press release outlining the new board of directors. Replacing Mr. Dineen as chairman of the Cetera board is Ben Brigeman, a member of Genstar Capital's strategic advisory board who advises the firm on the financial services industry. He was formerly a senior executive with Charles Schwab & Co., where he was the head of the individual investor and retail business. Also new to the board are Gary Michel, former chief financial officer of TravelClick, formerly in Genstar's portfolio of companies, and Hal Strong, the former vice chair at Russell Investments. Both are members of Genstar's non-employee strategic advisory board, according to the release. Rounding out the new board are Tony Salewski, managing director of Genstar Capital, and Sid Ramakrishnan, vice president of Genstar Capital. Other Cetera board members replaced include Mary Cranston, Michael Kaufman and David King. The six firms that make up Cetera's independent broker-dealer network are: Cetera Advisor Networks, Cetera Advisors, Cetera Financial Institutions, Cetera Financial Specialists, First Allied Securities and Summit Financial Services Group.

Latest News

Investing for accountability: How to frame a values-driven conversation with clients
Investing for accountability: How to frame a values-driven conversation with clients

By listening for what truly matters and where clients want to make a difference, advisors can avoid politics and help build more personal strategies.

Advisor moves: Raymond James ends week with $1B Commonwealth recruitment streak
Advisor moves: Raymond James ends week with $1B Commonwealth recruitment streak

JPMorgan and RBC have also welcomed ex-UBS advisors in Texas, while Steward Partners and SpirePoint make new additions in the Sun Belt.

Cook Lawyer says fraud claims are Trump’s ‘weapon of choice’
Cook Lawyer says fraud claims are Trump’s ‘weapon of choice’

Counsel representing Lisa Cook argued the president's pattern of publicly blasting the Fed calls the foundation for her firing into question.

SEC orders Vanguard, Empower to pay more than $25M over failures linked to advisor compensation
SEC orders Vanguard, Empower to pay more than $25M over failures linked to advisor compensation

The two firms violated the Advisers Act and Reg BI by making misleading statements and failing to disclose conflicts to retail and retirement plan investors, according to the regulator.

RIA moves: Wells Fargo pair joins &Partners in Virginia
RIA moves: Wells Fargo pair joins &Partners in Virginia

Elsewhere, two breakaway teams from Morgan Stanley and Merrill unite to form a $2 billion RIA, while a Texas-based independent merges with a Bay Area advisory practice.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.