In the News

McGinnis Steps Down as CEO of Advisor Group

August 1, 2016

By Janet Levaux, ThinkAdvisor

Valerie Brown will lead the group of IBDs as it moves from AIG to Lightyear Capital

Erica McGinnis, who has led the Advisor Group for the past three years, is stepping down from the post. Executive Chairwoman Valerie Brown temporarily replace her as president and CEO, and Brown and McGinnis will work together as the Advisor Group moves from being a part of insurance giant AIG to being owned by the private-equity firm Lightyear Capital.

“Erica McGinnis has accepted a role of executive vice president, head of transitions – leading the separation from AIG,” said spokesman Kevin Dinino, in a statement. “A search is underway for a new president and CEO … As president and CEO,

DOL, SEC Fee Scrutiny Sparks Shift to Passive Investing

July 28, 2016

By Melanie Waddell, ThinkAdvisor

Use of passively managed funds and ETFs at indie BDs and wirehouses will accelerate, says Broadridge

As regulators zero in on ensuring investors aren’t being soaked in fees, independent broker-dealers and wirehouses are abandoning actively managed funds and embracing passively managed ones and ETFs, according to new research by Broadridge.

“During the first half of 2016, net new assets for passively managed mutual funds increased by $37 billion, or 14%, for the retail distribution channels, while actively managed funds were down by $24 billion, or 0.6%,” Frank Polefrone, senior  vice president of Broadridge’s data and analytics business, said Thursday in releasing results from the firm’s most recent Fund Distribution Intelligence research.

During the first half of 2016,

John Hancock swims against the tide, doubles down on independent broker-dealer business

June 23, 2016

By Bruce Kelly, Investment News  

Unlike many insurance companies who are fleeing the high-risk, thin-margin independent broker-dealer business, John Hancock Financial Network, through its independent broker-dealer, Signator Investors Inc., has doubled down on its commitment.

Signator in May closed on its deal to acquire 883 registered reps and advisers from Transamerica. Those former Transamerica advisers have $25 billion in client assets and Signator now has close to $50 billion in assets under management, according to Brian Heapps, John Hancock Financial Network’s president.

After cutting about 200 low producers and adding the former Transamerica advisers, Signator now has close to 2,200 advisers under its roof, almost double what it had before. The average production of its advisers has increased from $125,000 to $175,000 after these moves,