BB&T Securities is a wholly-owned subsidiary of the BB&T Corporation. It functions as a registered investment advisor (RIA) providing various wealth management services to a wide range of clients, from individuals to institutions. The financial advisor firm currently has more than $19 billion In assets under management (AUM). It operates more than 1,400 offices throughout the U.S. and employs more than 1,500 registered representatives.
BB&T Securities Background
BB&T Securities can trace its roots all the way back to 1893 with the establishment of financial services firm Scott & Stringfellow. Today, it stands a full-service investment advisory and brokerage firm providing holistic wealth planning services to a diverse group of clients, including high net-worth individuals.
It conducts its business practices through the following four affiliates:
- BB&T Capital Markets
- BB&T Scott & Stringfellow
- BB&T Investment Services
- Sterling Advisors
What Types of Clients Does BB&T Securities Accept?
BB&T Securities offers financial planning services to a wide range of clients. These include the following:
- Pension and profit-sharing plans
BB&T Securities Minimum Account Size
In order to receive investment management services from BB&T Securities through its Spectrum Investment Program, you generally need a minimum account size of $100,000.
However, the account minimum may vary depending on which type of investment advisory program agreement you enter. We’ve outlined options below:
- CHOICE Portfolios (“wrap-fee” program): $250,000 for Enhanced Equity Portfolio and $100,000 for all other portfolios in the program
- Unified Managed Account Program (UMAP): $10,000
- Professional Management Program (PMP): $25,000
- Advisor Select: $25,000
Services Offered by BB&T Securities
Through the wrap-fee Spectrum Investment Program, BB&T Securities helps some clients find independent investment advisors to help them manage assets. However, this program does not offer direct investment portfolio-construction advice to these clients.
Those in the CHOICE Portfolio program can select from up to six portfolios managed by Sterling Capital Management, a subsidiary of BB&T Securities.
The firm would assist the client in developing an appropriate asset allocation across one or more of the following portfolios in the CHOICE Wrap program:
- Equity Income Portfolio
- Global Leaders Portfolio
- Special Opportunities Portfolio
- SMID Portfolio
- Insight Portfolio
- Enhanced Equity Portfolio
These services are offered through a wrap-fee program.
Separately, a client can enter into a Unified Managed Account Program (UMAP). This gives clients access to a discretionary account composed of different investment products that may include mutual funds, annuities, alternative investments and exchange-traded funds (ETFs). The firm and Investment Advisor Representatives (IAR) can work from different models as well as the individual’s unique financial needs and investment objectives.
The Unified Managed Account Program Select (UMAP Select), on the other hand, is a non-discretionary account that utilizes several different investment products including the ones listed above.
You can also come into a Professional Management Program (PMP). Through this service, a qualified Investment Advisor Representative (IAR) can establish a portfolio based on established PMP guidelines and the client's investment objectives. BB&T Securities has retained FDX Advisors to offer a range of services in order to offer this program.
Furthermore, a client can also enter into the Advisor Select arrangement with BB&T Securities. Through this non-discretionary advisory program, the client receives financial advice and traditional brokerage services for an asset-based fee. The client may deploy a predetermined investment strategy with the firm or develop one with the help of an IAR.
Sterling Advisors, a subsidiary of BB&T Securities provides discretionary and non-discretionary advisory services to clients.
In addition, the firm also offers individual financial planning services to its clients.
BB&T Securities Investment Philosophy
BB&T Securities deploys fundamental, cyclical and technical analysis strategies when delivering investment advisory services. However, methods may vary significantly depending on the type of program you agree to as well as the manager handling your money.
Fees Under BB&T Securities
Depending on what type of services you receive from BB&T Securities, you may face fees in the form of a percentage of assets under management taken out of your account size. The firm may also charge fixed fees for some services and/or collect commissions.
BB&T Securities charges an annual fee based on the published program fee schedule, which we’ve outlined below. This fee comes out of a client’s account and is charged prorated on a quarterly basis. Also called the Advisor Fee, this compensates the IAR. It’s outlined in more detail within the Service Agreement.
The annual fee does not include any program/manager portfolio fees that you may incur if you’re in a specific program such as the UMAP. These currently range from 0.05% to 0.75% based on the proportion of the account allocated to a particular manager. Moreover, it does not include any transaction fees or indirect fees such as mutual fund expenses. These would be outlined in the prospectuses of the fund or funds you’re invested in.
What to Watch Out For
An employee of Sterling Advisors serves on the TD Ameritrade Institutional President’s Council. TD Ameritrade compensates certain travel and lodging expenses for members to attend council meetings. As reported in its form ADV, BB&T Securities notes that “Clients should be aware, however, that the receipt of economic benefits by ‘Sterling Advisors’ or its related persons in and of itself creates a potential conflict of interest and may indirectly influence Sterling Advisors’ recommendation of TD Ameritrade for custody and brokerage services.”
BB&T Securities listed a few disclosures regarding disciplinary action, according to the latest Form ADV it filed. In September 2018, its subsidiary BB&T Investments was ordered to pay a $100,000 fine to the SEC. The penalty involved matters over failing to disclose a potential conflict of interest regarding the recommendation of a wrap-fee program of an affiliated investment advisor.
BB&T has reimbursed more than $600,000 to clients affected before the SEC investigation began.
Opening an Account with BB&T Securities
To open an account with BB&T Securities or discuss other services, you can call (800) 453-7348. You can also visit its website to leave a message and request a callback. In addition, you can visit one of its more than 1,000 offices across the U.S. To find the nearest location, you can use the look-up tool on the “Contact Us” section of its website.
Where Is BB&T Securities Located?
BB&T Securities is based in Richmond, Virginia. It also operates several branches throughout the country. The easiest way to find one near you is by visiting its website and entering your zip code.
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