AIG units fined by SEC for steering clients to high-fee products
March 14, 2016 by MATT ROBINSON, SONALI BASAK
(Bloomberg) — American International Group Inc. affiliates were fined by a U.S. regulator for charging customers higher fees in mutual fund sales, two months after AIG Chief Executive Officer Peter Hancock said he would divest the insurance company’s brokerage amid stricter rules.
Royal Alliance Associates, SagePoint Financial and FSC Securities steered clients into more expensive classes of mutual funds, earning an extra $2 million in fees, according to a statement Monday from the U.S. Securities and Exchange Commission. AIG agreed to pay $9.5 million to settle the regulator’s claims and didn’t admit or deny the regulator’s findings.
Originally Posted at LIfeHealthPro on March 14, 2016 by MATT ROBINSON, SONALI BASAK.
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