RALEIGH, N.C. — Rather than start from scratch, the $15 billion State Employees' Credit Union has bought XCU Capital Corp., a credit union-owned broker-dealer and investment advisory firm for $40,000 that was acquired by LPL Financial Corp in August 2007.

SECU had been an XCU Capital for the past five years, said Jim Blaine, president/CEO of the credit union. Rather than transition over to LPL Financial, SECU decided to buy the CUSO, closing the deal in October 2007 and bringing the credit union's 6,000 accounts in house, he added.

“The $40,000–it's just a legal shell,” Blaine said. “Instead of paying attorneys that amount, we went this way so that we can integrate it into our structure.”

The XCU Capital purchase is keeping with SECU's mission of developing programs and staff in house. SECU's 150 representatives are currently obtaining additional licensing and training. A new name is also in the works.

Blaine said skeptics say adopting a model with salaried staff as opposed to commissioned is “impossible.”

“In this type of environment, people want to work with people they trust,” Blaine explained regarding the country's economic downturn.

Of XCU Capital's 24 clients, SECU was the only that didn't make the transition after the LPL Financial acquisition, Blaine said.

Instant Insights /

State Employees' CU Buys XCU Capital for $40,000

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