SagePoint in the news
AIG in the news (last updated 01/20/2009)
Dear Clients,
I am pleased to announce that my affiliated broker-dealer, AIG Financial Advisors, Inc., has been renamed SagePoint Financial, Inc., effective January 20, 2009. Soon, you will begin to see SagePoint Financial on your account statements, transaction confirmations and business documents.
The name change to SagePoint Financial will have no impact on your investment account with our firm. All information related to your accounts including your account numbers will remain unchanged by this action.
Please let me know if you have any questions regarding this announcement or if you would like to discuss your investments or related financial matters at this time.
Sincerely,
Norma E Finkner, CFP, EA
(10/07/2008)
Dear Clients:
Last Friday, AIG issued a press release announcing its decision to sell many businesses in order to repay amounts owed under its $85 billion loan agreement with the Federal Reserve Bank of New York. One of the business units AIG is planning to sell is AIG Retirement Services, which includes our broker-dealer, AIG Financial Advisors.
This decision reflects the significant market value represented by AIG Financial Advisors which, along with Royal Alliance and FSC Securities comprise AIG Advisor Group, one of the nation’s largest broker-dealer networks. The liquidity issues that recently impaired AIG were not caused by any issues related to our broker-dealers. In fact, our businesses are strong, highly-respected, and profitable.
AIG Financial Advisors and the other broker-dealers that make up AIG Advisor Group have more than 7,000 affiliated representatives across the United States. With more than $100 million in capital, AIG Financial Advisors is well positioned to meet the evolving needs of its affiliated financial advisors and their clients. AIG Financial Advisors was a successful industry leader prior to its acquisition by AIG in 1999 and we will continue to be a leading independent broker-dealer under new ownership. I want to reassure you that a change in ownership will not disrupt our ability to provide you with quality service. And of course, a new parent company will not impact the safety or value of your investments.
Our continuing success is a direct result of our commitment to you, our valued clients. I remain focused on the critical business of meeting your investment needs and I look forward to the opportunities that lie ahead. As always, your business is deeply appreciated.
Sincerely,
Norma
09/18/2008
Dear Clients:
I want to keep you as informed as possible on the recent events affecting AIG, the parent company of my broker-dealer, AIG Financial Advisors. Attached are two news releases describing the loan for up to $85 billion that the Federal Reserve has extended to AIG in return for 79.9% equity ownership in the company. This loan should alleviate any liquidity concerns at AIG and lay the groundwork for continued normal operations at all of its individual business units, including AIG Financial Advisors.
The most important information I can offer you about this recent development is that the safety of your investments are not affected in any way. In fact, let me re-emphasize four key points:
· The assets of AIGFA are not assets of AIG and cannot be used to meet any obligations of AIG.
· Your brokerage account assets are held at Pershing, LLC, the clearing firm for AIGFA. They are not held in the direct custody of AIGFA.
· Your investments in mutual funds, variable annuities, real estate investment trusts, and similar investment products are held in the custody of the respective sponsoring company. These assets are not in the custody of AIG Financial Advisors, they are not included as an asset on AIGFA’s balance sheet, and they could never be used to meet the obligations of AIGFA.
· AIGFA and the other broker-dealer firms that make up the AIG Advisor Group, remain financially sound organizations with a strong, competitive position in the U.S. financial services marketplace.
I understand that you may have additional questions concerning the Federal Reserve’s actions in regard to AIG. I will continue to communicate updated information to you as I have it and I appreciate your patience in the meantime.
In summary, AIG’s businesses, especially AIG Financial Advisors, will continue to provide me the resources and support I need to serve you without interruption. I know that recent events in the financial markets may be unsettling for you. We are here to help you and will answer your questions as best and as quickly as we can. Please feel free to get in touch if you’d like to talk.
Sincerely,
Norma
Dear Clients:
I’m sure you are aware of the liquidity issues currently facing American International Group (AIG), the parent company of my broker-dealer, AIG Financial Advisors. Let me address this issue as it relates to the safety of your assets. This letter outlines the several ways in which they are protected:
· First, AIG Financial Advisors maintains a balance sheet separate and distinct from AIG’s. The assets of AIGFA are not assets of AIG and cannot be used to meet its obligations.
· Second, your brokerage account assets are held at Pershing, LLC, the clearing firm of AIG Financial Advisors; they are not held in the direct custody of AIG Financial Advisors. Pershing is a subsidiary of The Bank of New York Mellon Corporation, an organization that is not an affiliate of either AIG or AIG Financial Advisors.
· Third, regardless of the outcome of AIG’s current liquidity pressures, including the potential for insolvency, those circumstances will not cause AIG Financial Advisors to become insolvent.
· Fourth, in any case, customers are protected from the potential insolvency of their brokerage firms by insurance provided by the Securities Investor Protection Corporation (“SIPC”). SIPC protects customer assets up to $500,000 per customer, of which $100,000 can be held as cash. For accounts in excess of $500,000 in net equity, Pershing provides excess coverage through the Consumer Asset Protection Company. This insurance company is explicitly organized to protect net equity, including the value of cash, held in customer accounts at participating clearing firms in excess of SIPC limits. Please note that SIPC and Excess SIPC protection insures you only from losses due to the insolvency of a brokerage firm, not from losses caused by security price fluctuations or the financial condition of the companies in which you own stock.
· Fifth, your assets directly held at mutual fund companies, variable annuity companies, real estate investment trusts, and similar investment products are held in the custody of the respective investment sponsor. These assets are not in the custody of AIG
Financial Advisors, are not included as an asset in AIG Financial Advisors’ balance sheet, and could never be used to meet the obligations of AIG Financial Advisors.
I hope this letter reassures you of the safety of your brokerage assets and adequately explains the safeguards in place to protect them during these times of heightened uncertainty. Please don’t hesitate to contact my office if you have additional questions or concerns.
Sincerely,
Norma
*Securities offered through SagePoint Financial, Inc., member FINRA/SIPC.Investment advisory services offered through Chesapeake Financial Planning & Tax Services, Inc., a registered investment advisor not affiliated with SagePoint Financial,Inc.*
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