CNBS and U.S. Central begin seeing some activity as a result of the terminated noncompete

OVERLAND PARK, Kansas – Both CNBS and U.S. Central have reported some client activity since their 10-year noncompete ended. The noncompete prohibited CNBS from serving corporates and U.S. Central’s brokerage CUSO from serving CUs. With those restrictions now off, the two are looking for business and it looks like they’re getting it. According to U.S. Central, so far one corporate -SunCorp Corporate CU – has signed on with U.S. Central’s investment subsidiary to be able to sell marketable securities to its members. That U.S. Central subsidiary was formerly known as Capital Markets, Inc., but is in the process of changing its name to Credit Union Investment Solutions, Inc. and will use the acronym ISI (not CUISI). Right now corporates can only sell marketable securities through CUSOs. Under this scenario, a corporate will hire an investment professional who will be licensed by ISI which will manage the regulatory oversight of that rep, while the corporate will handle the day-to-day administration of that employee. Meanwhile, CNBS said so far three corporates – TriCorp, Louisiana Corporate and Minnesota Corporate – have registered with CNBS for broker/dealer services, and some trades have already been conducted.