RCS Capital has added an electronic services firm in the advisor industry to its growing broker-dealer platform.
The New York-based company announced Thursday morning it has acquired a 51% interest in Docupace Technologies, whose ePac offering became the first web-based processing system to be fully compliant with SEC and FINRA regulations. Terms of the transaction were not disclosed.
Louisa Quarto, president of RC Securities, a division of RCS Capital, says the new partnership will provide it with a new revenue stream by adding new clients and new services that will be made available to existing clients. Quarto says Docupace's ePac service, which its new broker-dealer client Cetera uses, was a major attraction in deciding to make the deal.
"We believe this will enhance what RCS is doing in a very scalable way," says Quarto. "It is a scalable business that is poised for smart growth."
Docupace, which was founded in 2002, works with broker-dealers to connect systems, documents and data. Docupace president and CEO Michael Pinsker, who remain in his leadership role, says of the 500 clients who utilize ePac now, many are large broker-dealers as well as RIAs. The Los Angeles-based firm also launched a service last year for advisors transitioning to a new custodian or broker-dealer that allows them to transfer client record into a paperless document management system.
"This partnership will allow us to expand our offerings," says Pinsker. "We are very excited."
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