Puritan Financial Companies has launched an investment services division consisting of two wholly owned subsidiaries, Puritan Brokerage Services and Puritan Investment Advisors.
Puritan has announced that both subsidiaries will develop business primarily through referrals from the parent company’s customer database. Puritan Brokerage Services (PBS) is an introducing broker/dealer, and member of FINRA, offering a range of investment products, including stocks, bonds, mutual funds, options, variable life, variable annuities, US treasuries and CDs.
PBS will primarily take ‘client entered’ orders from existing Puritan and PBS customers without actively offering investment advice or trade recommendations. This subsidiary will adopt a low-risk business model that does not contract with outside independent representatives. General securities accounts for PBS customers will be maintained at Southwest Securities, a third-party clearing firm, and will be insured through SIPC, the Securities Investor Protection Corporation.
Puritan Investment Advisors (PIA) offers fee-based investment advisory services, as well as planning, guidance and support to other Puritan affiliates. PIA is a registered investment advisor with the Texas State Securities Board and plans to acquire equivalent registration in other states, as well as registered investment advisor status with the Securities and Exchange Commission. PBS has been approved for membership with the Financial Industry Regulatory Authority.
Rusty Moore, chairman and president of Puritan, has been named CEO of both companies. Scott Brooks has been named president and chief compliance officer for Puritan Brokerage Services, and Paul Crooks will serve as CFO and financial operations principal.