Jackson National Life Insurance Co. announced the creation of a broker-dealer unit for banks and credit unions.
The new marketer, part of Jackson's National Planning Corp. subsidiary in Santa Monica, Calif., targets banks and credit unions with at least $100 million of assets.
The unit unveiled last Tuesday, NPC-Institutional Marketing Group, has four bank clients -- Bank of Stockton in California; Centier Bank in Whiting, Ind.; North County Bank in Escondido, Calif.; and Jackson Federal Savings Bank in San Bernardino, Calif.
"There are a lot of banks that don't have a broker-dealer, and we want to compete" for that business, said Brad Powell, president of Jackson's institutional marketing group.
Mr. Powell said NPC-Institutional Marketing Group is not meant to be a traditional third-party marketer that would come in and set strategy. Instead, it will take strategic direction from its bank customers and hire "dual employees," who work for both the marketing unit and the bank.
Two regional vice presidents have been hired to run the unit.
William B. Kay, formerly head of the brokerage arm of Manhattan Beach, Calif.-based Hughes Aircraft Employees Credit Union, runs the western U.S. operations from Los Angeles. Michael Pierce, who had been a regional sales manager for Jackson, runs the eastern operations from Atlanta.
"We're not intent on being a third-party marketer per se," Mr. Powell said. "We're not going to participate in some of the start-ups that third-party marketers have."
Instead, NPC-Institutional Marketing Group will look for banks that already have experience selling investment products and insurance, he said. And Jackson's products will not be favored over other companies', he said.
Mr. Kay said technology is a differentiating factor for the new marketer. The broker-dealer is using an Internet-based system. Using a laptop, brokers will have research, trading capabilities, on-line commission reporting and completion, and account information, he said.
"Internet technology allows you a lot of flexibility," he said.
NPC-Institutional Marketing Group also offers a consolidated statement that includes all brokerage account information and any bank product information the bank wants to include, he said.