From the June 2004 issue of Investment Advisor • Subscribe!

June 1, 2004

Change in Ownership

Security Benefit Corp., of Topeka, Kansas, and Brecek & Young, the independent broker/dealer in Folsom, California, are "forming a strategic alliance," according to President and Chief Executive Roland Brecek, in which "Security Benefit Corp. is making an investment in Brecek & Young in order to facilitate our growth." The two companies have worked together for a number of years, according to Chris Ranney, executive vice president at BY, and while BY will "remain independent and objective in its ability to provide service to clients," it will also have access to technology, service, and customer service platforms at SBC.

According to Michel Cole, a Security Benefit spokesperson, the tech platform at SBC has been "receiving attention of late." It was named one of the top five IT organizations in the nation, according to Forrester Research, and it will help BY grow its business, says Cole.

Ranney says that BY's access to transaction warehousing services will mean streamlining support for reps. Cole says that the acquisition will allow SBC to "gain the ability to research and understand in greater detail what independent reps require." This, she says, will allow SBC to better its customer service.

The venture, already approved by shareholders at BY but still awaiting regulatory approval, will also allow reps to have more access to markets that use group 457 plans, 403(b)s, and 401(k)s--municipalities, hospitals, and schools--since SBC is a provider of retirement products and services.

Brecek & Young has approximately 375 reps throughout the country, and in this year's Investment Advisor survey reported revenues of $24.5 million dollars for 2003. The firm was founded in 1992. The Security Benefit Group of Companies, with more than $12 billion under management in 2003 at Security Benefit Life Insurance Company, according to their Web site, has been in existence for over 100 years.

Reprints Discuss this story
This is where the comments go.