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February 18, 2010 Thursday
Report: Angry advisers walk away from AIG’s SagePoint
The advisers of Regal Financial hope to form their own broker/dealer under Chairman J. Lawrence Taunt.
A key group of SagePoint Financial Inc.’s representatives and advisers has walked away from the company, Investment News reported Feb. 16.
Regal Financial Group’s roughly 100 advisers generated about $9 million in fees and commissions during 2009, group chairman J. Lawrence Taunt told the news source. SagePoint has slightly more than 2,000 representatives and advisers.
Taunt accused SagePoint of launching an internal investigation against Regal, withholding bonus money and soliciting advisers. The dispute centered on Regal’s intention to form its own broker/dealer.
Taunt quit SagePoint Feb. 12 and said in a letter to President and CEO Jeffrey Auld that he and other Regal advisers felt they were “being thrown away,” Investment News said.
Most of the advisers are expected to go with Taunt and attempt to set up the new broker/dealer.
American International Group Inc. shopped SagePoint in 2009 before new CEO Robert Benmosche pulled the company off the market. Benmosche reportedly considered SagePoint core to AIG’s retirement services operations.
February 24, 2010