AIG Advisor Group Sale Fueled by DOL Fiduciary Rule, CEO Says

January 29, 2016

JANUARY 28, 2016 | By Katherine Chiglinsky, and Margaret Collins | Think Advisor

Sale is part of a larger effort to simplify under pressure from Carl Icahn

A U.S. proposal for stricter rules on retirement-product sales helped spur American International Group Inc.’s decision to sell its broker-dealer operation, according to Chief Executive Officer Peter Hancock.

“It’s a business we are not the best owner of, particularly in the light of potential Department of Labor rules,” Hancock said Tuesday in a conference call updating investors on AIG’s strategy. “With the new DOL rules, that was a big factor in thinking whether this was better owned by somebody independent of us.”

The rule is “basically going to increase the risk and cost of distributing a number of retirement products, and so therefore it could have a chilling effect on sales and commissions,” Randy Binner, an analyst at FBR Capital Markets, said in a phone interview. “Relative to everything else that’s going on at AIG — which is a lot — this is just a distraction they don’t need.”

Full Article Located Here

Go Back
July 29, 2015
February 22, 2016

I subscribe to Blue Vault to keep up with the sponsors and their wholesalers! The analysis keeps me up to date with the various portfolios and the way they are managed, including the differences between them.

*Alternative Investment Sponsors may be contributing members of Blue Vault, which could create potential conflicts of interest. Blue Vault subscribers and followers should consider this in their review and analysis. Information is intended only for institutional, broker dealer or registered investment adviser use. This information is prohibited for use by the general public.