Members React Favorably to Landmark Credit Union's Investment Service In-House Move

NEW BERLIN, Wis. – It’s only been a couple of weeks since Landmark Credit Union’s investment services were revamped but member feedback has been overwhelmingly positive. Effective July 1, the $975 million credit union made its investment services program a department within the fold rather than through its previous arrangement as a credit union service organization. Landmark joins other credit unions that have made the transition in light of the SEC’s requirement that broker/dealers enter into new networking agreements only with credit unions and not CUSOs. Under 2001′s Incidental Powers Regulations, the SEC has also said CUSOs no longer have a networking exemption to receive income without being registered. State-chartered credit unions in states that have not confirmed that Incidental Powers are similar to those of federally-chartered credit unions are the only exception, NACUSO has said. The former Landmark Financial Services will now be known as the Landmark Investment Center, said Ron Kase, LCU president/CEO. Other than the name change, the four investment representatives will remain the same. Linsco/PrivateLedger will continue to be LCU’s broker/dealer. While members have been informed of the change and account information will soon be moved over to LCU, the transition is virtually invisible. “What we’ve heard from members is that they like the idea of working directly with the credit union,” Kase said. “The response has been great.” Kase did not provide a dollar amount but did say the move will prove to be a cost saver for the credit unions. Going forward, there won’t be a separate set of books, tax reporting or payroll for investment reps now that LCU has added the new department, he added. The transition will indeed go a long way to building on the nearly $100 million in assets under management LCU now oversees. “It will simplify our lives,” Kase said. Investment reps will be located at LCU’s main branch here but will set up appointments with members at any of the other 10 branches. To acquaint members with the change, reps are planning to meet with them once a month on “Hot Dog Days” where exchanges will be made over a lunch of hot dogs and refreshments in a casual setting. LCU serves more than 120,000 members. Kase said the new department will also make it easier to cross sell products and services to members. “Right now, we’re still working on the consolidating, we don’t have any immediate plans to offer any new products or services,” Kase said. LCU offers a range of investment services including traditional trust services through LPL. -