Regions back in the securities business with Cetera deal

After sale of Morgan Keegan, bank inks deal with indie B-D to provide investment services to its customers

Nov 15, 2012 @ 8:47 am

By Bruce Kelly

broker-dealer, RIA, financial adviser
+ Zoom

After the somewhat tumultuous sale of its broker-dealer earlier this year, Regions Financial Corp. has begun to rebuild its presence in the securities business. The company today announced a deal with the Cetera Financial Group Inc. under one of Cetera’s independent broker-dealers will provide investment services for Regions in 16 states.

The deal is a significant move for both Regions and Cetera.

The Birmingham, Ala.-based banking company, which has a large footprint in the Southeast, sold its large brokerage subsidiary, Morgan Keegan & Co., to Raymond James Financial Inc. in April. And a Cetera subsidiary, PrimeVest Financial Services Inc., directly competes with leading broker-dealers such as LPL Financial LLC and Raymond James in placing independent-contractor registered reps in bank branches.

The roots of the deal can be traced to the financial crisis of 2008. Regions received a $3.5 billion loan in 2008 as part of the federal government’s Troubled Asset Relief Program. It was able to repay the TARP money this year after selling Morgan Keegan to Raymond James for $930 million.

Cetera Financial was created after ING Groep NV, shedding non-core businesses in the wake of the financial meltdown, sold its ING Advisors Network Inc. to private-equity firm Lightyear Capital LLC in 2010.

Customers at Regions bank branches will have access to a full range of financial advisory services, including managed accounts, mutual funds, annuities, insurance and retirement planning, the companies said in a statement issued this morning. Regions will begin placing brokers in bank branches in 2013 and will begin looking for financial advisers to fill those positions over the next few weeks. Interested reps should look on PrimeVest’s career opportunities website in the coming weeks for information.

“PrimeVest has a proven track record of helping banks create customized programs to meet the needs of their customers, and we are pleased to partner with them to offer Regions customers access to comprehensive financial planning, investment and insurance services through our extensive branch network,” Jim Nonnengard, executive vice president of Regions Investment Services, said in the statement.

“This is a tremendous opportunity to combine our dedicated focus on financial institutions with the impressive scale and expertise at Regions,” said Catherine Bonneau, PrimeVest’s president and chief executive. “We are looking forward to building a great program together.”

PrimeVest is a self-clearing broker-dealer and registered investment adviser that works with 500 banks and credit unions. On Dec. 1, it will change its name to Cetera Financial Institutions.

Regions Financial Corp. has $122 billion in customer assets.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

RIA Data Center

Use InvestmentNews' RIA Data Center to filter and find key information on over 1,400 fee-only registered investment advisory firms.

Rank RIAs by

Featured video

Events

Inside the first robo ETF

When it comes to exchange-traded funds, innovations come in all shapes and sizes. Check out Robo Global's Bill Studebaker discussing the first robo ETF.

Video Spotlight

Are Your Clients Prepared For Market Downturns?

Sponsored by Prudential

Recommended Video

Path to growth

Latest news & opinion

Jerry Schlichter's fee lawsuits have left an indelible mark on the 401(k) industry

After a decade of litigation, fees are lower and retirement plans are more transparent. But have the lawsuits gone too far?

10 best financial adviser jokes

How many financial advisers does it take to screw in a lightbulb?

Hackers may have profited from SEC breach

The hack of the agency's Edgar filing system occurred in 2016, but the regulator didn't conclude until last month that the cybercriminals may have used their bounty to make illicit trades.

Top 10 financial firms ranked by investor satisfaction

Find out which firm took the top slot for overall investor satisfaction for the second year in a row.

What not to say to clients when the markets drop

Here's what advisers should steer clear of saying the next time stocks turn downward.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print