And then there were five.
Boca Raton, Fla.-based Summit Brokerage, one of the six firms in the independent broker-dealer network of Cetera Financial Group, will shed its broker-dealer identity to become an independent subsidiary under the Cetera Advisor Networks brokerage.
Summit will become a "region," the rough equivalent of an office of supervisory jurisdiction, as part of Cetera Advisor Networks. The move should allow Cetera to increase efficiencies and scale its business.
After the move, Marshall Leeds, president of Summit, will continue in that role with his existing management team and also become regional director of the new region.
“Providing the best possible service and growth solutions to our advisors is at the core of everything we do,” said Leeds in released comments. “Removing the operational and regulatory challenges of operating a broker-dealer will allow the Summit region to be fully focused on enhancing the advisor experience, elevating our award-winning service model and recruiting new advisors. We anticipate a seamless transition, and the initial sentiment with advisors and employees is high.”
Leeds will report to Tom Taylor, president of Cetera Advisor Networks, after the move.
Cetera says the move, initiated by Summit, will alleviate “burdens of operating as an independent broker-dealer” and the new structure will allow it to focus on building its brand and supporting advisors.
"Marshall made the decision to close down his firm and join Cetera Advisor Networks as a region because he thinks he would be able to free up 40 percent of the time he spends on conference calls and regulatory broker-dealer stuff," said Taylor. "That freed up time will be spent on helping advisors grow."
Summit's advisors will be able to continue to operate in a similar ecosystem, said Taylor, and while clients will be notified of the transition, accounts will not need to be repapered and the move will be "seamless." Summit's advisors will also have the benefit of transitioning to Cetera Advisor Networks' new technological tools, like the recently announced SetIncome retirement income tool, at an earlier date than they otherwise would have been able to if the change did not occur.
Taylor said that Cetera benefits by having one less regulatory entity under its umbrella, simplifying the company's operating structure.