After just two months in the role, Larry Roth has stepped down from his role as CEO of RCS Capital (RCAP), the struggling parent of Cetera Financial Group that plans to file a prearranged Chapter 11 bankruptcy by the end of the month.
The resignation was not due to a disagreement with the company or its board of directors, the company said in an SEC filing. Roth will continue to serve as head of Cetera, which has about 9,500 across 10 broker/dealers.
Bradley Scher, an independent director and chairman of the executive committee, will take over as CEO.
"Having accomplished his primary objective of reaching an agreement with RCS Capital lenders to financially restructure and transform into a Cetera-only entity, Larry is now eager to focus all of his attention and energies on the continuing success of Cetera and the financial advisors served by the network," said Joseph Kuo, spokesman for Cetera.
The firm has had its share of management shakeups. Roth joined RCAP in September 2013 as head of Realty Capital Securities, the firm’s wholesale broker/dealer business. The firm is currently in the process of winding down that business, which was charged in November by Massachusetts' top securities regulator with fraudulently casting shareholder proxy votes. Prior to joining, he led AIG Advisor Group’s broker/dealers.
In May 2014, Roth took over as the head of Cetera, and in November 2015, he was named CEO of RCAP, taking over for Michael Weil, who stepped down after a year on the job. Brian D. Jones resigned as chief financial officer in September. In December 2014, Nicholas Schorsch, a co-founder of the firm, stepped down as CEO.
Scher, 55, is the managing member of Ocean Ridge Capital Advisors, an independent consulting company.