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New Details Emerge About AIG Restructuring Plan

By Paul Menchaca
September 10, 2009
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The AIG Advisor Group’s back-office reorganization will result in a net decrease of 24 positions at its three broker-dealer units.

According to a spokeswoman for the advisor group, 62 positions are being eliminated due to functions being shifted to other locations, while 38 positions are being added at the new locations to support these operations.

Job cuts and additions occurred at all three broker-dealers— Royal Alliance in New York, FSC Securities in Atlanta and SagePoint Financial in Phoenix. In the New York office specifically, 43 positions to be lost while 15 slots will be created.

As a result of the changes, all commission processing and compliance systems support will be placed in the New York office, while all brokerage processing has been moved into the Atlanta and Phoenix locations. The consolidation is meant “to provide the strongest and most capable back-office support for our broker-dealers,” said the spokeswoman.

In 2008 the broker-dealer network moved all trading functions into its New York office. In the second quarter of this year all of the group’s license and registration positions were co-located into the Atlanta office.