SEC reportedly probing AIG sales practices for retirement products

Insurer's stock drops on report the agency is looking at the unit that handles retirement plans for school districts and universities.
OCT 29, 2019
By  Bloomberg
American International Group Inc. shares slumped Tuesday amid a report that the Securities and Exchange Commission is probing sales practices for retirement products at a unit that handles plans for school districts and universities. The stock fell as much as 2.6% after the Wall Street Journal said the SEC was inquiring about whether incentives at an AIG unit rewarded salespeople for pitching higher-cost products and whether the payments that AIG's representatives received for selling certain products were properly disclosed. Judy Burns, an SEC spokeswoman, declined to comment. Regulators have sought to clarify conflict-of-interest rules for sales by brokers and advisers of certain products. The SEC announced new rules in June that would require brokers to act in the best interest of clients after an earlier effort by the Department of Labor fell apart. The SEC inquiry into AIG allegedly centers around a unit's arrangements with school districts and universities. [More: DOL fiduciary rule won't help some 403(b) retirement plans]​ Several high-level executives at the AIG unit were put on administrative leave in recent weeks, the Journal reported. An AIG spokesperson said the company couldn't comment at this time on any regulatory inquiries or personnel matters. "It is our policy to cooperate fully with all regulatory inquiries and to take steps to ensure compliance with the law and best practices," the spokesperson said in an emailed statement. [Recommended video: Advisers demanding help to improve the client experience]​ AIG stock recovered from earlier declines, and was down 1.3% at $51.86 at 1:35 p.m. in New York.

Latest News

The power of cultivating personal connections
The power of cultivating personal connections

Relationships are key to our business but advisors are often slow to engage in specific activities designed to foster them.

A variety of succession options
A variety of succession options

Whichever path you go down, act now while you're still in control.

'I’ll never recommend bitcoin,' advisor insists
'I’ll never recommend bitcoin,' advisor insists

Pro-bitcoin professionals, however, say the cryptocurrency has ushered in change.

LPL raises target for advisors’ bonuses for first time in a decade
LPL raises target for advisors’ bonuses for first time in a decade

“LPL has evolved significantly over the last decade and still wants to scale up,” says one industry executive.

What do older Americans have to say about long-term care?
What do older Americans have to say about long-term care?

Survey findings from the Nationwide Retirement Institute offers pearls of planning wisdom from 60- to 65-year-olds, as well as insights into concerns.

SPONSORED The future of prospecting: Say goodbye to cold calls and hello to smart connections

Streamline your outreach with Aidentified's AI-driven solutions

SPONSORED A bumpy start to autumn but more positives ahead

This season’s market volatility: Positioning for rate relief, income growth and the AI rebound