A temporary order will let the investment advisor and broker-dealer units of a large financial services company proceed with normal operations.[@@]
The units, part of American International Group Inc., New York, received the temporary order from the U.S. Securities and Exchange Commission Dec. 8.
The SEC published the order today in the Federal Register.
Some of the 15 AIG units that applied for relief are AIG Annuity Life Insurance Corp., AIG SunAmerica Life Assurance Company, American General Life Insurance Company, American International Life Assurance Company of New York, the U.S. Life Insurance Company in the City of New York, and the Variable Annuity Life Insurance Company.
One of the companies, Brazos Capital Management L.P., is a majority-owned subsidiary of AIG.
The AIG units have asked the SEC for help because of financial instruments that a sister company in the risk-management business sold to PNC Financial Services Group Inc., Pittsburgh, in 2001.
The SEC says the instruments helped PNC improve its earnings in ways that violated securities laws. AIG agreed to a settlement to resolve the matter without admitting or denying any of the SEC’s allegations, according to a summary of AIG’s application for permanent relief that appears in the Federal Register notice.
The settlement includes an injunction that, in theory, could prevent any AIG affiliate from acting as an investment advisor or selling securities, according to the notice.