Consolidating all of its BD's onto the Pershing platform is a big part of Cetera’s strategy. Last fall, Cetera reached a new pricing arrangement with Pershing, based on the larger scale from its acquired firms.
Cetera has insisted that the BD's it has snapped up, including Summit, VSR Financial, Girard Securities and First Allied, would be allowed to operate at least somewhat independently with unique brands.
“We emphasize that this [J.P. Turner] transition is not part of a broader consolidation strategy,” Roth said.
The changeover to Summit is expected to be completed by the end of October, Roth added.
It wasn’t immediately clear if J.P. Turner reps will have to repaper accounts, but Roth promised a “seamless migration.”
J.P. Turner currently clears through Apex Clearing Corp., based in Dallas.
The action to phase shut down J.P. Turner may not be so surprising given that it had not been performing up to expectations. In March, Cetera reduced by $6 million the $15 million it still owed for the firm, bringing down the total paid in cash and stock to $26.7 million.