In the continuing shakeup of Cetera Financial Group after its emergence from the bankruptcy of RCS Capital earlier this summer, reports are circulating that Larry Roth will step down as CEO and be replaced by Cetera Chairman Robert Moore, according to news reports.
One source said that Cetera's board was still considering its options and that no decision had been reached. However, given the numerous reports circulating throughout the industry, it was expected that the board would try to reach a decision this week.
"As a matter of policy, we do not publicly discuss speculation or rumors related to our organization," said Joseph Kuo, a spokesman for Cetera Financial Group, in an e-mail statement.
Moore was president and chief operating officer at LPL Financial, the nation's largest independent broker-dealer, when it went public in 2012. Moore was also CEO of LaSalle National Bank when it was sold to ABN Amro in 2008. Both experiences might mean Cetera's board would see Moore as someone who could guide the firm's investors through of a wide array of exit strategies over the next several years, sources said.
In January, Roth stepped down as chairman of RCS Capital to take over as CEO of Cetera and its 9,500 advisors. Roth is generally creditied with ably steering Cetera through the bankruptcy process while retaining the vast majority of the B-D's reps at a time when frivals were seeking to poach their best reps.
During the ongoing changes at Cetera over the summer, Moore had said having a separate CEO and chairman of the board was a calculated move to promote more robust business discussions. Moore also said he anticipated the structure would become a model for other businesses.
In June, Cetera, based in El Segundo, Calif., announced the appointment of three new board members, which was supposed to be the end of the company’s restructuring.