Frequently Asked Questions About the Marco Consulting Group

Segal Rogerscasey, The Segal Group’s SEC registered investment consulting business, has signed an asset purchase agreement to acquire Marco Consulting Group (MCG) effective January 1, 2017. MCG is one of the premier investment consulting firms to multiemployer benefit plans in the U.S. The combined firm will be known as Segal Marco Advisors.

Segal Marco Advisors will provide trustees with unprecedented resources and talent, and make the firm the undisputed leader for multiemployer investment consulting.

The organization will have a staff of more than 150 investment, consulting and research. In addition, it will have offices in Atlanta, Boston, Chicago, Cleveland, Darien (CT), Dallas, Denver, Los Angeles, New York, Seattle, Toronto and Ireland.

Read the press release announcing the acquisition.

Segal Advisors, Inc., dba Segal Rogerscasey (“SRC”) will be purchasing substantially all of the operating assets, business, and goodwill of The Marco Consulting Group, Inc. (“Marco”).  After the transaction closes, SRC will begin doing business as Segal Marco Advisors (“SMA”).  Marco will then cease doing business.

Segal Marco Advisors will have a staff of more than 150 investment, consulting and research professionals serving more than 400 clients with advisory assets exceeding $500 billion. John DeMairo, Segal Rogerscasey’s President and CEO, will continue in the same role at Segal Marco Advisors. MCG co-founders, Jack Marco and Tom Mitchell, Sr., will serve as advisors to the organization.

We expect closing to occur at 12:01 A.M. on January 1, 2017.

Segal is organized as follows.  The Segal Group, Inc. is the holding company for a number of subsidiaries providing services of various types in the employee benefits area.  Segal Advisors, Inc., dba Segal Rogerscasey, is one of those wholly-owned subsidiaries.  It is registered under the Investment Advisers Act of 1940, and is subject to regulation by the Securities and Exchange Commission (“SEC”).  It is the only entity under The Segal Group that may provide investment advice, so Segal Rogerscasey will purchase the business assets of Marco on January 1, 2017.  The company will then be Segal Advisors, Inc., dba Segal Marco Advisors.

There are a number of other wholly-owned regional subsidiaries that are known as The Segal Company, Inc., with each one having its own geographic identifier, such as The Segal Company (Eastern States), Inc., The Segal Company (Western States), Inc., and the like.  These companies collectively operate under the brand name “Segal Consulting.”  A Segal Consulting client will contract with the appropriate regional subsidiary for pension or health actuarial services, general employee benefit consulting services, etc.  

The Segal Company (Eastern States), Inc. has two divisions offering consulting services in specific markets.  Sibson Consulting offers actuarial and strategic human resources consulting to the corporate market.  Segal Waters Consulting offers human resources consulting to the public sector. 

Finally, Segal Select Insurance Services, Inc. is a wholly-owned subsidiary that brokers fiduciary liability insurance, cyber liability insurance, employment practice liability insurance, and fidelity bonds.

The professionals from each side of Segal operate independently and are not controlled by the other side.  Segal Consulting and SRC have had many clients in common over the past several decades, and there has never been an issue.  Neither the IRS, the Department of Labor, nor the SEC has ever challenged these arrangements. 

Several factors demonstrate the independence and professional standards of both SRC and Segal Consulting.

Investment Consulting Independence

SRC, which is incorporated under the laws of the State of New York, has its own Board of Directors, its own management team, its own statements of income and expense, and its own payroll. The legal requirements imposed by the SEC under the 1940 Act result in nearly complete separation of SRC from its related affiliates, including Segal Consulting. Note the following points that distinguish SRC:

  • SRC has a Code of Ethics document that all employees are required to sign.
  • SRC has a Regulatory Policy and Procedures Manual that all employees are required to sign.
  • All SRC employees have to do annual and quarterly personal securities transaction reporting.
  • SRC has its own proprietary client management system. It maintains a repository for storing contracts, client analyses, meeting notes, etc., all of which is available only to SRC employees.
  • The offices and file cabinets of Segal Rogerscasey throughout the United States are not accessible by employees of Segal Consulting.
  • The Segal Group’s Information Technology Department uses the document security features of a document management system (“iManage”) that is used by all subsidiaries of The Segal Group to ensure logical separation of Segal Rogerscasey documents from Segal consulting documents. In fact, Segal Rogerscasey’s documents are saved on a separate database within iManage, and may only be accessed by SRC employees.
  • Most importantly, SRC acts as a fiduciary for most of the services it provides, which means that it is required to meet high professional standards and act in the interests of its client plans and their participants and beneficiaries.

Actuarial and Benefits Consulting Independence

Our actuaries are similarly subject to high professional standards, and indeed, are involved in setting those standards and in the disciplinary process that results from alleged violations of them. Many of our actuaries are Fellows of the Society of Actuaries, Members of the American Academy of Actuaries, Fellows of the Conference of Consulting Actuaries, and Enrolled Actuaries under ERISA. Our Chief Actuary was appointed to the Actuarial Standards Board (“ASB”) in 2009.The ASB establishes the professional practice standards for all actuaries in the US.

In addition, Segal Consulting has actuaries serving in the following positions:

  • Member and Director on the Board of the American Academy of Actuaries, currently serving on its Committee on Qualifications.
  • Member of the Pension Committee for the Actuarial Standards Board, developing standards for actuaries working in the pension area; also serving as the Chairman for the Subcommittee on Retiree Group Benefits.
  • Vice President (Pension) and Chair of the Pension Practice Council for the American Academy of Actuaries (AAA); former Chair of the AAA Multiemployer Plans Subcommittee.

All consultants and actuaries are subject to strict quality standards and periodic training to keep skill levels current. Segal Consulting maintains and regularly updates its policies and protocols to assure consistent and high quality service to its clients.

You can find the Code of Conduct applicable to our U.S. actuaries, and the actuarial qualification standards here:

SRC clients do not need to take any action as a result of this transaction.

SRC will bring significant strengths to Marco, including industry-leading research capabilities, particularly in the areas of manager due diligence, alternative investments and asset-liability modeling.

Marco is asking each of its clients to consent to the assignment of the Marco contract to SRC.  Each Marco client should review the draft consent document carefully, and have it reviewed by counsel.  SRC will be glad to answer any questions that Marco clients or SRC clients raise.