Securities Law Blog

In a May 14, 2010 press release, Great American Financial Resources, Inc. (GAFRI) announced that they will exit the independent broker-dealer business operated through its subsidiary Great American Advisors, Inc. (GAA).

GAFRI says its decision is part of its “strategy to focus on its core insurance and annuity operations.”

While GAA will no longer provide retail brokerage services to independent registered representatives, GAFRI will continue to sell variable annuities through unaffiliated broker-dealers. It will operate GAA as a Securities and Exchange Commission (SEC) registered broker-dealer and registered investment advisor to service its variable annuity and retirement plans businesses.

According to the release, GAFRI has made an agreement with Philadelphia based Lincoln Investment Planning, Inc. to transfer the registered representatives and customer accounts of GAA to Lincoln. The transition is expected to be completed by July 12, 2010, pending regulatory approval.

GAA is the third broker-dealer to shut down its operations in the past three months. The GAA close follows GunnAllen Financial Inc. which closed in March, and the AFA Financial Group LLC in April.