Franklin Financial Network, the parent company of Franklin Synergy Bank, announced this week that it has spun off its wholly-owned subsidiary, Banc Compliance Group, to BCG Consulting. The newly-independent company will continue to operate under the name Banc Compliance Group, and will continue to be managed by President Connie Edwards.
Franklin Financial Network acquired Banc Compliance Group in 2008. “In our earliest days, our thought was to have an affiliated third party within the holding company to ensure that our compliance needs were met,” Franklin Financial Network Chairman Richard Herrington said in a Form 8-K filing.
“As the bank grew, we recognized that it suited both Banc Compliance Group and Franklin Financial Network better to separate," Herrington said. "Given the complexity of a bank with $1.3 billion in assets, we needed a dedicated, in-house team to manage our compliance function, compared to outsourcing this function.”
Franklin Financial Network was advised by the law firm of Baker Donelson Bearman Caldwell & Berkowitz. BCG Consulting was advised by the law firm of Harwell, Howard, Hyne, Gabbert & Manner.