Date: 08.12.14

Cetera Financial Group Announces New Strategic Framework

Network Structure Enables Enhanced Tools and Resources for Member Broker-Dealer Firms and Advisors, While Reinforcing Unique Brands and Cultures

Sets New Industry Standard for Balance Between Scale and Personalization

Los Angeles, CA – Cetera Financial Group, a leading network of independent broker-dealer firms, today announced its new strategic framework. Cetera Financial Group’s new strategic framework leverages the network’s industry-leading scale, along with the resources of RCS Capital Corporation (“RCAP”) (NYSE: RCAP), to deploy enhanced solutions and services for advisors across all of the network’s member firms, while setting a new industry standard for balance between scale and personalized support.

Going forward, Cetera Financial Group will be the nationwide network that unifies the collective family of broker-dealer firms first brought together by its parent company RCAP, and is synonymous with what RCAP previously referred to as the “RCAP Retail Advice Division.” Through its member broker-dealers, Cetera Financial Group will be the home to more than 9,400 independent and institutions-based financial advisors (upon the consummation of the pending acquisition of VSR Group), and growing, making it the second largest independent broker-dealer network in the U.S. by number of advisors, as well as one of the leading providers of retail services to the investment programs of banks and credit unions.

At the center of this strategic framework is a comprehensive support platform, providing enhanced resources to the executive leadership of each broker-dealer member firm, as well as leading-edge practice management, marketing, business consulting, wealth management and technology to advisors of the member firms. This construct enables advisors to take advantage of cutting-edge programs and gain access to top talent across a wide range of competencies to help them more effectively grow and manage their business, while best serving their clients.

Network level support resources will provide augmented capabilities that will enhance the unique brands of the member firms and strengthen the relationships between the member firm and its advisors, as well as the advisors and their retail clients.

R. Lawrence “Larry” Roth, Chief Executive Officer of Cetera Financial Group, said, “The strategic framework we are unveiling today will help define success in the independent broker-dealer industry for the next ten years. For the past decade, this industry has all too frequently focused on the pursuit of scale by building monolithic firms, at the expense of unique cultures and personalization of service. Cetera Financial Group will deliver all the benefits of scale at the network level, combined with actively supporting the unique cultures, leadership teams and brands of our member firms.”

The wide-ranging network level support platform will deliver key resources that cut across all advisors’ businesses, and will include the following:

  • Significantly expanded business consulting resources, including the network-wide launch of PentameterTM, the practice management platform and integrated business consulting process first launched by First Allied Securities. Enhanced business consulting capabilities will also encompass an expanded team to help with advisor business needs from succession planning, to driving growth, hiring, managing and developing talent and additional capabilities that will make it easy for advisors to build, execute and monitor these plans
  • Marketing experts to directly support advisors with their practice-specific branding, website and digital marketing needs, combined with the introduction of a significantly enhanced Connect2Clients marketing portal, originally launched by Cetera Financial Group, to help advisors market their business and drive engagement with clients and prospects better than anyone else in the industry
  • Best practices in service and support from Summit Brokerage Services and Investors Capital, perennial top firms in advisor-voted rankings
  • Enhanced Information Technology capabilities focused on ease of use and expansive mobile capabilities to improve advisors’ technology experience
  • Team of internal and external wealth management consultants who can work with advisors on a one-to-one basis to help either transition or grow their fee based business and a group of advanced planning consultants to assist with complex planning situations

Michael Weil, President of RCAP said, “We believe there is no better time to offer an alternative to the false choice of scale versus personalization. We see a confluence of trends in demographics, personal finance and asset management that are generating a demand for objective professional financial advice. We provide access to capital, a long-term commitment to the retail investment advice sector and ongoing investments in the human resources, technology, products and programs that are required to succeed, coupled with an appreciation of the independent investment advisor community. We believe the Cetera Financial Group platform positions us to capitalize on significant future opportunities.”

Adam Antoniades, President of Cetera Financial Group, said, “We recognize that each of the individual member firms of our network bring cultural and service attributes to the table that couldn’t be replicated on a centralized level without losing the connection that advisors feel to their firm. This personal connection and engagement is vitally important, which is why our consolidated support platform will complement and enhance, rather than replace, what the member firms of our network currently provide to their advisors. We are confident that our new strategic framework blends scale and resources with unique brands and cultures in ways that foster efficiency, productivity and creativity for everyone involved.”

About Cetera Financial Group

Cetera Financial Group is the retail advice platform of RCS Capital Corporation (NYSE: RCAP). Comprised of Cetera Advisors LLC, Cetera Advisor Networks LLC, Cetera Financial Specialists LLC, Cetera Investment Services LLC (marketed as Cetera Financial Institutions), First Allied Securities, Investors Capital, J.P. Turner and Company, The Legend Group, Summit Brokerage Services, along with VSR Financial following the close of its recent announced acquisition by RCAP, the platform is the second largest independent financial advisor network in the nation, as well as a leading provider of retail services to the investment programs of banks and credit unions. It delivers award-winning wealth management and advisory platforms, comprehensive broker-dealer and registered investment adviser services, and innovative technology to over 9,000 independent financial professionals and approximately 500 financial institutions nationwide. Through its distinct firms, Cetera offers the benefits of a large, established and well-capitalized broker-dealer and registered investment adviser, while serving independent and institutions-based financial advisors in a way that is customized to their unique needs and aspirations. Cetera is committed to helping advisors grow their businesses and strengthen their relationships with clients.

About RCAP

RCAP is an investment firm focused on the retail investor. RCAP is engaged in the wholesale distribution, investment banking and capital markets businesses, and a research business focused on alternative investments. Following the closing of recent acquisitions of independent broker-dealers and an investment manager, RCAP is also engaged in the independent retail advice and investment management businesses. RCAP’s business is designed to capitalize, support, grow and manage direct investment and alternative investment programs, and to serve independent financial advisors and their clients. Additional information about RCAP can be found on its website at www.rcscapital.com. RCAP may disseminate information about itself, including the results of its operations and financial information, via social media platforms such as Facebook, LinkedIn and Twitter.

Forward-Looking Statements
The statement in this press release include statements regarding the intent, belief or current expectations of RCAP and members of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should," "look forward" or similar expressions. Actual results may differ materially from those contemplated by such forward-looking statements due to certain factors, including RCAP's ability to integrate businesses acquired in recent and pending acquisitions into its existing businesses. Additional factors that may affect future results are contained in RCAP's filings with the Securities and Exchange Commission (the “SEC”), which are available at the SEC's website at www.sec.gov. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law.

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