After almost a year in federal receivership, in which chunks of the giant corporation have been sold off, American International Group (AIG) has ended negotiations to sell its Advisor Group of independent broker/dealers. The group had been on the market for roughly 10 months.
The change of plans can be attributed directly to the change of CEOs, according to a letter sent to advisers by the Advisor Group management team Monday evening. New CEO Bob Benmosche, who has been charged with resuscitating AIG, wants to retain the entire AIG Retirement Services group, including the Advisor Group, the letter says. Benmosche "understands, appreciates, and is enthusiastic about our desire to build a world-class financial advisory business," according to the letter.
The three independent broker/dealers that comprise the group—FSC Securities, Royal Alliance and Sagepoint Financial—will remain independent and will retain their senior management. Larry Roth, CEO of the Advisor Group, will remain at AIG as well. Advisors' compensation packages will not change, nor will branch structures and headquarters.
The question is how advisers who remained with the AIG broker/dealers in anticipation of a sale will take the news. There have been some high-profile advisor defections over the past year. Now the campaign is to keep remaining advisers in the fold.