Point72 Asset Management said it took a 5.1% passive stake in RCS, which operates broker-dealers, in a Nov. 14 regulatory filing.
RCS said its in contact with the SEC and FINRA as part of its regular operations. The company and its subsidiaries have continued to respond to on-going verbal inquiries, requests for correspondence, information and discussions with regulators, including with respect to the ARCP disclosure, RCS said in a quarterly report filed with regulators Nov. 14.
RCSs shares have fallen 38% since ARCP disclosed accounting mistakes last month, partly because of concern over damage to its business selling nontraded real estate investment trusts sponsored by AR Capital. That company was created by Nicholas Schorsch, RCSs chairman and biggest shareholder, and chairman of American Realty Capital Properties as well.
Brokerage firms including LPL Financial have said they were suspending sales of some products tied to the New York-based companies.
RCS has sought to distance itself from accounting errors at ARCP. Some brokers have lifted suspensions on investment products RCS sells, and the company expects most of the others will be reinstated by the end of the year, Michael Weil, the companys chief executive officer, said on a Nov. 13 conference call.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access