RCAP executives said Thursday that the retail business continued to perform well, and that advisor recruiting had not been impacted by the ARCP issue.
But the product wholesaling unit, now run by former LPL Financial executive Bill Dwyer, has been hurt. Equity raised was $2.3 billion, down from $2.6 billion in the second quarter and flat from a year ago.
The company declined to give future guidance for the wholesaling business due to the disruptions caused by ARCP’s problems.
“We expect full-year guidance once we have visibility [from] reinstated selling agreements,” Weil said.
RCAP executives also downplayed the effect of clearing firms refusing to clear trades of some Schorsch-affiliated products.
“Honestly, advisors are calling us directly” to place trades, Dwyer said. “So it’s not as significant as you think.”
Both Pershing and National Financial were reported to have stopped processing some products in recent days.
“Pershing remains open and has been open,” Weil said, adding that “a majority of broker-dealers clear through Pershing.”
RCAP’s pro forma revenue for the third quarter was $725 million, up 10 percent from a year ago. Results were driven by higher retail and investment management revenue, the company said, offset by lower revenues in wholesale distribution, investment banking and capital markets.
RCAP stock traded down more than 15 percent Thursday before recovering part of the loss.