A tentative asset purchase and assignment agreement between Capital Financial Holdings Inc. unit Capital Financial Services Inc. and Tampa, Fla.-based Calton & Associates Inc. executed in the first quarter became effective July 1 following the Financial Industry Regulatory Authority's consent, Capital Financial Holdings Inc. said in a regulatory filing.
Pursuant to the agreement, Calton & Associates was entitled to purchase certain retail customer accounts of Capital Financial Services for $300,000. The transaction proceeds will be deposited directly to an escrow account established for the purpose of settling customer arbitration claims against Capital Financial Services.
The transfer of the accounts is not yet complete.
Capital Financial Services on July 31 closed its active retail securities brokerage business by terminating its relationships with all of its associated independent registered representatives and mutually concluded its clearing arrangement with RBC Correspondent Services in August. The company is maintaining its administrative, reporting, accounting and compliance personnel and functions.