Date: 05.25.16

Cetera Financial Group Completes Transformation into Independent, Privately Held Organization Singularly Focused on Supporting Financial Advisors and Financial Institutions

Network of Independent Broker-Dealers Completes Capital Infusion of $150 Million to Enhance Advisor Support Tools and Platforms

Cetera's Reorganized Parent Company Names Industry Leader, Robert J. Moore, Chairman of the Board to Support Corporate Governance Best Practices in Separation of Chairman and CEO Functions

Cetera Remains Committed to Multi-Brand Strategy

Los Angeles, CA – Cetera Financial Group ("Cetera" or "the Company")*, a leading network of independent broker-dealer firms, today announced that it has completed its strategic transformation process to become an independent, privately held, well-positioned organization. Going forward, Cetera will be the only operating business under its parent company, which will be singularly focused on the Company's mission of supporting independent financial advisors and investment programs of financial institutions to empower the delivery of objective financial guidance to retail investor clients across the country.

R. Lawrence "Larry" Roth, Chief Executive Officer of Cetera, commented, “We completed our transformation process on a very fast track and in strong shape, all while retaining the loyalty of the overwhelming majority of the advisors and institutions we serve. Today, we have a clear go-forward ownership structure, a healthy balance sheet, significant additional capital to continue investing in advisor support resources and a battle-tested management team energized to help our advisors and institutions grow."

The key highlights of Cetera's successful completion of its transformation process include:

  • Infusion by new equity owners of additional $150 million in capital for continued investments in technology, advisor growth and practice management service enhancements
  • Effective immediately, appointment of Robert J. Moore as Chairman of the Board of Cetera's reorganized parent company to drive best corporate governance practices in separation of Chairman and CEO functions
  • Larry Roth will continue to lead Cetera as its CEO, and be appointed a member of the parent company's Board

Commenting on Robert Moore's appointment as Chairman, Mr. Roth said, "Having known Robert personally and professionally for many years, I'm confident we couldn't have chosen a better Chairman. We have a great friendship and complementary skill sets, combined with a shared passion for the industry. The entire management team of Cetera is very excited to work closely with Robert as we embark upon a fresh stage of success. Robert's experience in successfully leading large firms to achieve new levels of profitable growth speaks for itself, and the clear separation of the Chairman and CEO functions will set a new standard for accountability and conflict-free decision-making for the independent broker-dealer space."

Mr. Moore said, "When I was first approached by Larry and the new equity owners of Cetera to serve as Chairman, I immediately felt this was an excellent fit for me. I've always believed that many of our industry's challenges and opportunities orient around a fundamental need to drive greater transparency and accountability at the Board level. Moreover, Cetera has placed its transitional issues in the rearview mirror, and is moving ahead with a clean slate, a revitalized organization, and major new advisor growth initiatives. I'm excited about Cetera's model, its management team and employees, and most importantly, its advisors and institutions."

Robert J. Moore is CEO of Legal & General Investment Management America Inc., an institutional asset manager. Previously, he served as CFO and later, President of LPL Financial.

Mr. Roth concluded, “Across our network, we've demonstrated our ability to perform at peak levels throughout extremely adverse conditions, while continuing to innovate and enhance the wide range of industry-leading tools and resources that have made Cetera the platform of choice for advisors and institutions. The Board, the management team and our entire home office staff are enthusiastic about all that we can accomplish together for our advisors and institutions in the years ahead. We're confident that the best is yet to come for Cetera."

About Cetera Financial Group

Cetera Financial Group® ("Cetera") is a leading network of independent retail broker-dealers empowering the delivery of objective financial advice to individuals, families and company retirement plans across the country through trusted financial advisors and financial institutions. Cetera is the second-largest independent financial advisor network in the nation by number of advisors, as well as a leading provider of retail services to the investment programs of banks and credit unions.

Through its multiple distinct firms, Cetera offers independent and institutions-based advisors the benefits of a large, established broker-dealer and registered investment adviser, while serving advisors and institutions in a way that is customized to their needs and aspirations. Advisor support resources offered through Cetera include award-winning wealth management and advisory platforms, comprehensive broker-dealer and registered investment adviser services, practice management support and innovative technology. For more information, visit www.ceterafinancialgroup.com.

* "Cetera Financial Group" refers to the network of retail independent broker-dealers encompassing, among others, Cetera Advisors, Cetera Advisor Networks, Cetera Financial Institutions, Cetera Financial Specialists, First Allied Securities, Girard Securities, The Legend Group and Summit Brokerage Services.

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