In the News

Patience Wears Thin for AIG Reps, Advisers

00:00 01 April in In the News by rafferty

by Bruce Kelly and featured in Investment News April, 2009: After months of waiting for talks on the sale of the three broker-dealers that make up the AIG Advisor Group to be resolved, many of the more than 6,000 representatives and financial advisers in the network are growing anxious about their future. Meanwhile, last Wednesday, the chief executive and president of AIG broker-dealer Royal Alliance Associates Inc. of New York, Arthur Tambaro, sent a letter to that firm's reps and advisers that acknowledged that AIG was in the final stages of negotiations with a potential buyer, said one adviser affiliated with Royal Alliance. "The letter acknowledged that this was an extensive process and that there was significant interest from potential buyers," said Jeffrey Vahanian, president of Vahanian & Associates Financial Planning Inc. of Saratoga...

Indie B-Ds Cast Wary Eye on Insurers

00:00 01 February in In the News by rafferty

by Darla Mercado and featured in Investment News February, 2009: Seeking to assess the strength of the insurance carriers they do business with, many smaller independent broker-dealers — flummoxed by the insurers' opaque balance sheets and arcane accounting practices — are relying on a time-tested tool: their own observations. They have noticed with alarm a rash of recent departures by insurance wholesalers, either due to the elimination of their jobs or through voluntary resignations, from some major carriers, including John Hancock Financial Services Inc. of Boston and The Hartford (Conn.) Financial Services Group. "I don't look kindly on companies that take out their wholesalers in a time like this. We could no longer do business with them if I didn't have the support right now when I need it the most for our...

John Hancock Makes Room for Independent Reps

00:00 01 November in In the News by rafferty

by Darla Mercado and featured in Investment News November, 2008: John Hancock Financial Services Inc. today will announce a dramatic overhaul of its business model in which some of its 1,800 representatives have the option of going independent. Under Hancock's new structure, as of Jan. 1, reps may elect to go independent, which would allow them to expand their menu of product offerings and give them more control over how they market their businesses. The new model also allows for groups of independent reps to band together to form a so-called producer group, providing insurance and investment services. Reps may also choose to maintain a traditional relationship with Boston-based Hancock as statutory employees, in which case they would receive a high level of support as well as a subsidized health and retirement plan from...