Corporate & Securities Law

SNSFE Helping AIG Financial Advisors, FSC Securities and Royal Alliance Reps in Transitioning to Other Financial Services Firms In View of Announced Sales of Units

By James Eccleston

AIG Advisor Group is assiduously trying to convince financial advisers to stay in their seats while the firm's parent - American International Group Inc. of New York - attempts to find a buyer for three broker-dealers.

Last Monday, during a conference call with representatives from the three AIG broker-dealers - AIG Financial Advisors Inc. of Phoenix, FSC Securities Corp. of Atlanta and Royal Alliance Associates of New York - the firm said that broker-dealers will be sold as part of a package that includes the entire retirement services group.

During the call, the firm said that AIG management will do everything in the best interests of the reps and their clients in finding a buyer.  The firm also said that a retention package of some sort would likely be included in the deal.

The firm would like to see a deal completed by the end of the year.  However, some advisers have said that finding a new owner that's a good fit for the broker-dealer is a key issue and a most important issue for them moving forward.  One said, "I'm not looking to jump ship, but I have to keep my options open."

Meanwhile, the 7,000 reps and advisers at the AIG broker-dealers are being courted heavily by competitors, recruiters and reps said.  "I'm getting two or three letters or postcards each day," said a rep.

If reps are deciding to transition or are in transition, attorneys at SNSFE can help.  As lawyers, we

1. Plan in advance all aspects of a successful transition;
2. Negotiate the terms of the employment agreement with the new firm;
3. Negotiate the terms of the promissory note agreement with the new firm;
4. Be "on call" for difficulties that may arise during the transition to the new firm;
5. Defend the advisers' interest and reputation from defamation by the former firm and/or its advisers, including negotiation of language for the Form U-5 filing;
6. Defend advisers in injunction proceedings and in arbitration relating to their employment agreements, including any non-solicitation and confidentiality agreements at the former firm; and,
7. Plan all corporate, tax, compensation and benefits matters.

In short, we work with advisers to reduce the stress and the distractions associated with even the most successful transitions.  Please contact SNSFE if we can be of service.

Source:  InvestmentNews

Full post as published by FinancialCounsel on October 21, 2008 (boomark / email).