After almost a year in federal receivership, in which chunks of the giant corporation have been sold off, American International Group Inc. (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 advisors by the Advisor Group management team this 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.
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 advisors 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, and all three broker-dealers slipped in Financial Planning's annual broker-dealer rankings. Now the campaign to keep remaining advisors in the fold is on.
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