The AIG Advisor Group announced a back-office consolidation plan among its broker/dealers that will include cutting some of its workforce.
Larry Roth, president and chief executive officer of AIG Advisor Group, said in an internal memo that the plan will result in a “net decrease in positions across our network” but did not offer any other specifics. One published report estimated 40 positions will be eliminated.
“While it was a very difficult decision to eliminate positions, it has always been our desire to develop the strongest, most capable back-office support for our broker/dealers,” Roth said in the memo.
The planned cutbacks represent the latest challenge for AIG Advisor Group, which was recently taken off of the selling block.
Under the planned consolidation, the commissions processing functions will be transferred to the company’s New York office, which is home of Royal Alliance. Currently those functions are housed in the company’s offices in Atlanta and Phoenix, where its FSC Securities and SagePoint Financial units reside, respectably. All compliance systems support functions will also be moved to New York. Meanwhile, brokerage processing services performed in New York will now be redistributed to Atlanta and Phoenix.
“Our effort to restructure the brokerage services and commissions departments takes advantage of group synergies and economies of scale, which will allow us to provide better service to our independent financial advisers,” Roth said in the memo.