Simmers resurfaces

John Simmers, a onetime leading executive in the independent-contractor brokerage industry, is jumping back into the business. He is leading a group of industry executives to acquire Calton & Associates Inc., a small broker-dealer with 200 independent and employee representatives. A longtime top executive with the network of broker-dealers formerly owned by ING Groep and now called Cetera Financial Group, Mr. Simmers and his group plan to change the name of Calton to Innovation Equity Partners Financial. Central to the acquisition is a new technology platform that Mr. Simmers thinks will give improved access to top-shelf programs that many small or midsize firms can't afford. That platform, called Innovative Business Intelligence Technology Solution, is being used at Calton but will also be available to nonrelated broker-dealers, he said. Small and midsize broker-dealers have been deeply hurt by the credit crisis, recession and sluggish economy. The number of broker-dealers registered with the Financial Industry Regulatory Authority Inc. has fallen 12% over the past five years to 4,384. The overwhelming majority of those are small or midsize firms — those with 100 or fewer reps, and between 101 and 500, respectively. “We are talking to a number of broker-dealers about the platform,” Mr. Simmers said.

DATA WAREHOUSE

He described the new platform as a data warehouse for broker-dealers and registered investment advisers at lower cost. He said that he and the group of executives expect to acquire about 50% of Calton by the end of the month, and eventually to control 80%. Mr. Simmers' new management team at the broker-dealer and tech venture will include Dwayne Calton, founder and chief executive of Calton & Associates; Randy Ciccati, former president and chief executive of PrimeVest Financial Services; Keith Gregg, former president and chief executive of First Allied Securities; and Ramu Singh, former chief operating officer of Rady Asset Management. [email protected] Twitter: @bdnewsguy