Both companies are connected to REIT magnate Nicholas Schorsch, who is the chairman and former chief executive officer of ARCP and executive chairman of the board of RCAP.
The Advisor Group’s move puts additional pressure on Schorsch’s non-traded REIT empire. Last week, National Planning Holdings and Securities America Inc. stopped selling American Realty products.
Other broker-dealers are re-evaluating their sales as well. “It’s being talked about at all these firms,” said recruiter Jon Henschen of Henschen Associates LLC.
“We’re definitely going back and looking at [American Realty Capital] products,” confirmed an executive at a mid-sized broker-dealer who asked not to be identified.
Spokespersons for ARCP and RCAP were not available for comment.
Reuters contributed to this article.