But it doesn't appear to lure him too much. Meanwhile, he says calls from recruiters come in frequently offering details about upfront deals, some worth seven figures. Is the customer service still working? Is the trading desk still operating properly? Are fees being collected and dispersed in a timely manner? All those things are running smoothly,” he says. “The most important thing right now is how my day-to-day is being affected. “That's slightly up, but not by that much when you consider what's happened,” Roth says.Īmong the advisors staying with the AIG network is New York-based Henry Asher who says Royal Alliance, his b/d, is trying hard to keep its advisors happy. In fact, the number stood at 3.5 percent for all of 2007. In any case, Roth says that 2 percent in revenue loss since September due to advisor departures isn't so bad. How do you know whether or not you'll be unhappy at this point?” he asks. “There is no reason to be looking for a new broker/dealer. Not surprisingly, AIG Advisor Group CEO Larry Roth has this message for his advisors: Stick around. They're talking to as many AIG b/d reps as they can,” he adds. “Meanwhile, you've got a whole community of independent b/ds telling them how much better they are than AIG's b/ds. “Reps are dipping their feet elsewhere because they don't know where their b/d is going to end up,” says one recruiter who works with independent b/ds. Meanwhile, rival firms are on the recruitment war path. These days, there aren't many cash-ready buyers - that's a problem, since a prolonged limbo could eventually thin the FA ranks, says one advisor who has yet to make a decision about leaving. It's hard to say how long AIG will shop the retirement services unit around - and how long advisors' wait-and-see attitude will last. But for how long? And for what exactly? STAYING PUT (FOR NOW) The reps who have left since early September represent just 2 percent of the b/ds' combined revenue, according to the AIG Advisor Group.
For now, it seems like most advisors at the b/ds - AIG Financial Advisors, Royal Alliance and FSC Securities/Advantage Capital - are choosing to stay put and see what kind of buyer emerges.
Among the units on the chopping block is AIG Retirement Services, which includes the firm's three independent broker/dealers. Of course, the retail brokerage unit had nothing to do with the parent company's credit default swap mess, but they have certainly been caught in the crossfire: To raise cash, AIG is trying to sell off its b/ds. That's the predicament many reps in the AIG Advisor Group are facing these days: Ditch the firm - and the unflattering associations that come with it post bailout - as quickly as possible, or wait it out. It just happens to be owned by a flaky company.” I respect the management at Royal Alliance. “If that's the case, then I don't have to leave.
“The game plan is to sell us to someone who respects our independence,” he says. Even though he gets calls from rival firms on a weekly basis, he's decided to stay put.
One Royal Alliance veteran with about $170 million in client assets says he was concerned about his future when news of AIG's problems broke - at first. But not every advisor is heading for the exits.
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