In the News

Former AIG Executive Gruber Back in B-D Business

by Bruce Kelly and featured in Investment News
June, 2010:

Joseph B. “Joby” Gruber, the former CEO of AIG broker-dealer FSC Securities Corp. who was forced to resign after Finra accused him of allowing an underling to take continuing-education exams in his name, is back in the independent broker-dealer business.

After a two-year hiatus mandated by his non-compete agreement with American International Group Inc., Mr. Gruber, 51, has been hired by American Portfolios Financial Services Inc., a fast-growing broker-dealer that recently had success recruiting brokers from another AIG broker-dealer, SagePoint Financial.

“Joby was very good with rep relations,” said Jonathan Henschen, an industry recruiter. “He brought strong continuity and stability to the firm.”

Mr. Gruber will be president of national sales and marketing,

Swell in 401(k) specialists’ seeking out ‘progressive’ broker-dealers

by Darla Mercado and featured in Investment News
May, 2010:

Advisers who specialize in the 401(k) market have been switching broker-dealers in search of firms they feel are better equipped to handle their growing business — and new government pension regulations.

Proposed rules from the Labor Department, including heightened fee disclosures and restrictions on who can provide advice to plan participants, are placing additional regulatory scrutiny on advisers and brokers who work with retirement plans.

Some major broker-dealers and wirehouses have started to accommodate advisers who want to be fiduciaries. Meanwhile, Goldman Sachs Group Inc. has entered the fray, promoting alternative-asset funds and designing target date funds that provide guaranteed income to grab a bigger piece of the $2.7 trillion 401(k) market.

PFS Reps Stand To Pick Up Stock

by Darla Mercado and featured in Investment News
April, 2010:

Registered representatives at PFS Investments Inc. will pick up some extra pay from the firm’s public offering, according to a prospectus filing with the Securities and Exchange Commission.

PFS is the broker-dealer of Primerica Inc., the unit that was spun off of Citigroup Inc. in an initial public offering Thursday.

The filing, which was submitted yesterday, indicates that Primerica will distribute about 5 million shares in common stock to certain employees, including officers and sales force leaders. Of that, some 255,836 shares will be issued when the restricted stock awards held by employees and sales reps under the Citi Stock Award Program and the Citi Capital Accumulation Program for PFS reps are converted into Primerica equity awards.