Problems at real estate investment trust giant American Realty Capital Properties escalated on Tuesday when LPL Financial Holdings said it will temporarily prohibit its almost 14,000 brokers from selling products sponsored by ARCP and RCS Capital Corp. American Realty Capital and RCS Capital are separate companies, but both were founded by REIT magnate Nicholas Schorsch, chairman and former chief executive of ARCP and executive chairman of RCS Capital.Last Wednesday, ARCP fired two senior executives, citing accounting irregularities, and said it will restate earnings for the first half of the year. <ID:nL4N0SO6NQ>Amanda Keating, an LPL spokeswoman, failed to comment on specific products or whether the company would redeem sales already made. LPL provides financial products and services to independent brokers and financial advisers.LPL's decision follows similar decisions by smaller independent brokerage firms.
American Realty Capital Properties, Inc., is a real estate investment trust (REIT). Shares of ARCP traded higher by 3.82% or $0.3/share to $8.15. In the past year, the shares have traded as low as $7.38 and as high as $14.96. On average, 17581100 shares of ARCP exchange hands on a given day and today's volume is recorded at 42302104.
RCS Capital Corporation is a holding company. The Company is engaged in the business of wholesale broker-dealer, investment banking and capital markets business, a transaction management services provider and a transfer agent. Shares of RCAP fell by 20.31% or $-2.78/share to $10.91. In the past year, the shares have traded as low as $13.55 and as high as $39.98. On average, 749775 shares of RCAP exchange hands on a given day and today's volume is recorded at 5661443.
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