Transamerica Financial Advisors, Inc. (“Transamerica Financial Advisors”) (CRD#16164) has many different complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors such as yourself. At the Law Offices of Robert Wayne Pearce, we have investigated Transamerica Financial Advisors, its regulatory and customer complaints, and have also represented investors with claims of fraud, negligence, and breach of fiduciary duty against this organization and its financial advisors.
If you believe you have a claim against Transamerica Financial Advisors, you should strongly consider hiring an investment fraud lawyer. You should not wait until it’s too late to file a claim. The Law Offices of Robert Wayne Pearce, P.A., offers free consultations. Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
Can I Sue Transamerica Financial Advisors?
If you’ve lost money caused by Transamerica Financial Advisors and/or its employees’ misconduct then the answer is, YES, you can sue Transamerica Financial Advisors, but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. Attorney Robert Wayne Pearce has over 40 years of personal experience in FINRA arbitration proceedings and knows very well how you can not only sue Transamerica Financial Advisors in FINRA arbitration proceedings but WIN that arbitration. The easiest way to know if you have a viable case against Transamerica Financial Advisors is to call Attorney Pearce at our office at 800-732-2889.
Investment Losses? We Can Help
Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.
or, give us a ring at (800) 732-2889.
What is Transamerica Financial Advisors?
Transamerica Financial Advisors (CRD#16164) is a registered broker-dealer. It operates as a full-service independent broker-dealer, providing a range of financial products and services to individual investors and financial advisors.
As a registered broker-dealer, Transamerica Financial Advisors is subject to regulations and oversight by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is required to comply with industry standards and regulations to ensure the protection of its clients’ interests.
A failure to comply with industry standards by either its brokers or the firm itself can result in disciplinary actions, fines, or other penalties imposed by regulatory authorities.
Transamerica Financial Advisors Has Many Different Regulatory Problems
Transamerica Financial Advisors’ rapid growth has not been without consequences. There have been approximately 19 state and self-regulatory body disclosure events; that is, final and formal proceedings initiated by a regulatory authority (e.g., a state or federal securities agency like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) and the North American Securities Administrators Association (NASAA) for a violation(s) of investment-related rules or regulations. In addition, there have been customer complaints filed against Transamerica Financial Advisors for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record.
We have reported and written about these regulatory problems and customer complaints over many years. Transamerica Financial Advisors is a repeat offender: there are over 19 FINRA-reported proceedings citing the firm with one form of supervisory lapses or another.
A Brief Overview of Some of the Regulatory Problems Transamerica Financial Advisors Has Faced Over the Years*
Transamerica Financial Advisors has been repeatedly censured, warned, and fined multi-millions of dollars for its own misconduct and failure to supervise its army of financial advisors.* A few of the notable FINRA Sanctions for its Supervisory Failures are below:
FINRA Censures and Fines Transamerica Financial Advisors for Failure to Supervise Variable Annuity Recommendations
Brief Overview: Without admitting or denying the findings, Transamerica Financial Advisors consented to the sanctions and to the entry of FINRA findings that it failed to reasonably supervise its registered representatives’ variable annuity recommendations and made disclosures that either omitted or contained materially inaccurate information. FINRA alleged the firm failed to provide adequate training to its representatives regarding how to complete disclosure forms that were required when recommending a variable annuity exchange and failed to provide adequate training to supervisors regarding how they should verify the information on the disclosure forms. Because of this, certain firm principals approved variable annuity exchanges based on disclosure forms that contained inaccurate or missing information, which each had the effect of making the exchange appear to be more favorable than was the actual case. In several cases, these misstatements or omissions prevented the firm’s reviewing principals from having a reasonable basis to approve these transactions. FINRA stated that the firm and its representatives received compensation from new variable annuity sales, trails, and subsequent contributions in the form of gross dealer commissions of more than $591 million. As a result, the firm was censured, fined $4.4 million, and ordered to pay restitution of $4,354,160 to customers.
SEC Censures Transamerica Financial Advisors for Mutual Fund Share Class Selection Practice
Brief Overview: The Securities and Exchange Commission initiated cease-and-desist proceedings against Transamerica Financial Advisors based on findings of breaches of fiduciary duty and inadequate disclosures by the firm in connection with its mutual fund share class selection practices and the fees it received. According to the SEC, the firm purchased, recommended, or held for advisory clients’ mutual fund share classes that charged 12b-1 fees instead of lower-cost share classes of the same funds for which the clients were eligible. The firm received 12b-1 fees in connection with these investments but failed to disclose in its Form ADV or otherwise the conflicts of interest related to its receipt of 12b-1 fees and/or its selection of mutual fund share classes that pay such fees. During this period, the firm received 12b-1 fees for advising clients to invest in or hold such mutual fund share classes. As a result of the conduct and violations, the firm was censured and agreed to pay disgorgement of $5,364,292.04 plus interest and cease and desist from violating securities laws and regulations.
FINRA Censures and Fines Transamerica Financial Advisors for Failure to Apply Discounts to Eligible Purchases of REITs and BDCs
Brief Overview: Without admitting or denying the findings, Transamerica Financial Advisors consented to the sanctions and to the entry of FINRA findings that it failed to identify and apply volume discounts to eligible to purchases of non-traded real estate investment trusts and business development companies. This resulted in customers paying excessive sales charges. In addition, the firm failed to establish, maintain, and enforce a supervisory system and written supervisory procedures with respect to the sale of nontraded REITs and BDCs. FINRA stated the firm did not have procedures in place reasonably designed to identify accounts that would be eligible for volume discounts but instead relied on its associates to ensure its customers received the volume discounts. The firm also failed to provide adequate guidelines, instructions, or policies for its associated persons and supervisors to follow to determine whether a customer’s purchase qualified for a volume discount. As a result, the firm was censured, fined $85,000, and ordered to pay restitution of $51,066.08.
FINRA Censures and Fines Transamerica Financial Advisors for Filing Inaccurate Form U5 on Behalf of Former Registered Representative
Brief Overview: Without admitting or denying the findings, Transamerica Financial Advisors consented to the sanctions and to the entry of FINRA findings that it filed with FINRA an inaccurate form U5 on behalf of a former registered representative that failed to disclose that the representative had been charged with a felony prior to her termination. FINRA stated that the representative was charged with a felony during the period of her employment and registration with the firm, and the firm was aware of this information during her employment. FINRA also stated that the firm filed with FINRA an inaccurate and misleading amended form U5 for the same representative that stated that she had not been charged with a felony prior to her termination and that she had not disclosed her arrest at the time of her resignation. As a result, the firm was censured and fined $50,000.
SEC Censured and Fines Transamerica Financial Advisors for Failure to Apply Advisory Fee Discounts to Eligible Clients
Brief Overview: The Securities and Exchange Commission initiated cease-and-desist proceedings against Transamerica Financial Advisors for the firm’s failure to apply advisory fee discounts to certain retail clients in several of its advisory fee programs contrary to its disclosures to clients and its policies and procedures. The firm offered clients in these programs breakpoint discounts that reduce the total advisory fee as the clients’ assets in the programs increase. In the Form ADV filings and in account opening documents, the firm represented that clients may request that the firm aggregate the values of certain related accounts to achieve these discounts. The SEC also stated the firm’s policies and procedures required that clients receive savings from breakpoint discounts. Despite these disclosures, the firm failed, in some instances, to apply the breakpoint discounts regardless of client requests for aggregation. The SEC also found the firm failed to adopt and implement adequate policies and procedures to ensure that its clients’ fees were calculated as represented. As a result of such willful violations of the Advisers Act, the firm was censured and fined $553,624.
*Above are only some of the regulatory disciplinary actions filed against Transamerica Financial Advisors by FINRA. NASAA and other state securities regulator investigations and enforcement actions account for another 14 BrokerCheck disclosures.
Transamerica Financial Advisors Customer Complaints
There have been scores of customer complaints filed against Transamerica Financial Advisors stockbrokers and investment advisors over the years. We have launched many investigations of current and former Transamerica Financial Advisors advisors:
- Michael Mackay of Transamerica Financial Advisors, Inc
- Enrique Huang of Transamerica Financial Advisors
- Kris Hayne of Transamerica Financial Advisors
- Travis Christiansen of Transamerica Financial Advisors
- John Nguyen Formerly With Transamerica Financial Advisors
- Racquel Ramlal-Slawinski of Transamerica Financial Advisors
- Feng Luo of Transamerica Financial Advisors, Inc.
- Jonathan Katz formerly with Transamerica Financial Advisors, Inc.
- Lu Li of Transamerica Financial Advisors, Inc.
- Matthew Burnias formerly with Transamerica Financial Advisors, Inc.
- Scott Fries formerly with Transamerica Financial Advisors, Inc.
- Tad Binkley formerly with Transamerica Financial Advisors, Inc.
- Matthew Dupuis of Merrill Lynch, Pierce, Fenner & Smith Incorporated
- Ruben Fernandez of Stonecrest Capital Markets, Inc
- Susan Duke formerly with Transamerica Financial Advisors, Inc
- Benny Ongkobudidjojo of Transamerica Financial Advisors, Inc Reviews
- Sara Collins Of Transamerica Financial Advisors, Inc. Reviews
If you have lost money investing with any of these Transamerica Financial Advisors advisors or others within this brokerage firm, it’s important that you reach out to an investment loss attorney quickly because the statutes of limitations can bar your claims. Call us at 800-732-2889.
Why Does Transamerica Financial Advisors Have So Many Regulatory Problems And Customer Complaints?
Independent broker-dealers are notorious for their lax supervisory practices and procedures. The business model of many franchise type operations is to open many offices nationwide for steady growth of fixed monthly revenues without the costs attendant to a full-service branch office with on-site manager, compliance officer and operation personnel. The registered representatives of these independent broker-dealers generally operate as separately incorporated businesses. They are not employees of the broker-dealer and therefore not controlled in the same manner as full-service brokerage firm representatives. The registered representatives control their structure and costs to maximize profits and often leave the protection of investors’ rights and interests as their lowest priority.
The typical supervisory organization of independent broker-dealer operations is to have other independent contractors operate Offices of Supervisory Jurisdiction (OSJs) to monitor the registered representatives from geographically remote offices and then report to the main franchisor’s compliance office at national headquarters. The supervisors at the OSJs are not employees of the franchisor and often run their own brokerage, insurance and other businesses. They are not devoted full-time supervisors of the smaller branch offices. Consequently, OSJ managers cannot and do not supervise the day-to-day operations of the registered representatives of these Independent broker-dealers.
Generally, there is no immediate review of new accounts opened, securities transactions, business records, cash or securities receipts and deliveries, correspondence and business activities unrelated to the securities brokerage operation at these independent brokerage firms. The lax supervision leaves investors who have transferred their accounts to the smaller independent broker-dealer vulnerable to sales of securities that have not been reviewed or authorized by anyone other than the sales representative earning a commission. There may be no one onsite to detect forgeries of clients’ signatures on documents, the placement of inaccurate information about a client’s investment objectives and financial condition to document the suitability of a particular investment recommendation. Oftentimes there is no daily review of sales literature and client correspondence to protect against misrepresentations and misleading statements being made to investors. In fact, it is not unusual for there to be only one compliance audit visit per year at many of these offices.
These Independent brokerage business operations are worrisome to the North American Securities Administrators Association (NASAA), which has documented more instances of sales abuse and consequently investor losses at these firms than the traditional brokerage firms with branch offices with on-site managers and compliance personnel.
Did Transamerica Financial Advisors Advisor Misconduct Cause You Investment Losses?
When financial advisor misconduct has caused you to lose substantial value to your investment accounts, you have the right to seek reimbursement from the responsible parties. Transamerica Financial Advisors is responsible like any employer for its financial advisors acts and omissions. In addition, it has an independent duty to supervise its stockbrokers and investment advisors. These cases can be extremely complex, and so having the support of a reputable attorney who is experienced in recovering investment losses for investors is key to your success. Many customers make the mistake of contacting Transamerica Financial Advisors without representation with an attorney about their complaints and have their complaints denied.
Related Read: Can You Sue Your Brokerage Firm?
Investment Losses? We Can Help
Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.
or, give us a ring at (800) 732-2889.
Consult With An Attorney Who Recovers Investment Losses Caused By Transamerica Financial Advisors Today!
The investment loss attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 40 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with Transamerica Financial Advisors cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
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