AIG Combines 3 Broker-Dealers

The move formalizes what had been a reality for the past 18 months, says Cannon, who has been president of all 3 firms during that time.

"If youre looking at it from the standpoint of consolidation, its already done," he says. "What were doing now is cosmetic."

Putting the 3 brokers under the AIG aegis allows them to take advantage of the parent companys widely recognized national advertising campaign, Cannon says.

Simultaneously with the launch of the new unit, AIG Advisor Group is undertaking a nationwide campaign to recruit advisors, Cannon says.

The AIG Advisor Group has a network of 7,000 independent financial professionals.

It also includes Advantage Capital Corporation, FSC Securities Corporation and Royal Alliance Associates Inc. Those firms chose not to join the new entity, Cannon says.

"Each of these firms has separate management teams and leadership and chose to operate under their existing names while using AIG Advisor Group as a marketing designation for their advisors," he says.

Reproduced from National Underwriter Edition, April 29, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.