Extends reach of open architecture to chase retirement assets. SunTrust Banks is merging two brokerage subsidiaries, SunTrust Securities and Alexander Key, to form a new full-service brokerage affiliate called SunTrust Investment Services (SunTrust IS). Alexander Key’s managing director John Rhett has been named chairman of the new unit, and SunTrust Securities CEO Peter Bielan will serve as its president.

There’s more at work in the new arrangement than a name change, according to William Rogers Jr., head of SunTrust's wealth and investment management business. “Specifically, this combination will capitalize on Alexander Key's open architecture philosophy while better leveraging the extensive distribution network, client base and excellent sales production of SunTrust Securities,” he says. “The combination will also improve operating efficiencies, and the combined strength of these two entities' leadership, top advisors and advisor teams is expected to provide an impetus for even higher performance levels for this key SunTrust business line."

Rollovers

And that, adds Rogers, is part and parcel with Atlanta-based SunTrust’s efforts to “capitalize on the impending retirement wave and wealth transfer underway in today's financial world.” The Financial Research Corporation estimates that rollovers from benefit plans will more than double from 2002’s $188 billion a year to $400 billion a year by 2010, as the retirement of the baby boom generation gets going in earnest.

SunTrust IS will have over 600 registered reps serving clients in 40 states. “To meet their comprehensive needs, clients will have access to brokerage, asset management and trust services; financial and estate planning; research; corporate services including retirement planning; a range of lending services; mutual funds; and insurance,” SunTrust says, adding that the merger will be “transparent” to existing clients because the subsidiaries use similar brokerage platforms.

SunTrust Securities began operations in 1986. In January 2005, it completed a merger with the brokerage business of National Commerce Financial Corporation, about seven months after their respective parents agreed to merge.

SunTrust formed Alexander Key late in 2001. Operating as a unit of SunTrust IS, it will continue using its name at its six locations in Richmond, Va., Nashville, Tenn., Jacksonville and Orlando, Fla., and Washington, D.C. –FWR