In the News

AIG Advisor Group’s Makeover Gets OK

by Bruce Kelly and featured in Investment News
January, 2007:

Industry observers and financial advisers are welcoming a series of management changes announced Tuesday by AIG Advisor Group Inc., which hopes the changes will lead to better services for advisers.

The biggest change is that AIG has named Larry Roth to replace Peter Harbeck as chief executive.

Mr. Harbeck remains the group’s chairman.

AIG Advisor Group’s changes are seen as boding well for the network of broker-dealers.

The changes signal that AIG Advisor Group’s management wants to “use the best ideas among the firms and spread them across the board to benefit everyone,” Mr. Henschen said.

Mr. Roth joined AIG in January 2006, replacing Mark Goldberg as president and chief executive of Royal Alliance Associates Inc.

Indie Firms Sweeten Deals For Recruits

by Bruce Kelly and featured in Investment News
January, 2007:

New York – Faced with intense competition for financial advisers and growing transition costs, an increasing number of independent-contractor broker-dealers over the past year have boosted the amount of money they give to representatives and advisers to switch firms.

The broker-dealers that recently have increased the transition or bonus money include top firms such as LPL Financial Services of Boston and San Diego, Commonwealth Financial Network of Waltham, Mass., and Cambridge Investment Research Inc. of Fairfield, Iowa, according to executives and recruiters.

In the past, those firms and others gave recruits transition packages of 2% to 3% of their prior 12 months’ production. Those packages, which have various structures, are now as high as 8% to 10%,

Independent Broker Dealers

by Bruce Kelly and featured in Investment News
January, 2007:

New York – After a banner year for recruiting advisers in 2005, many independent-contractor broker-dealers saw the growth in snagging new registered representatives stall last year.

Recruiting was flat or down in 2006, compared with its momentum a year earlier, according to brokerage executives, recruiters and consultants, who nonetheless are optimistic about this year.

But it may be an uphill battle.

Across the brokerage industry, the movement of experienced financial advisers between firms dropped 14% to 15% last year, compared with the level in 2005, according to John G. Peluso Jr., chief executive of Wachovia Securities Financial Network LLC, which is the independent-contractor-representative business of Wachovia Securities LLC of Richmond,