TransAmerica Financial Advisors

Kurta Law is investigating broker recommendations made by TransAmerica Financial Advisors. TransAmerica Financial Advisors (CRD #: 16164) is a brokerage firm with headquarters in St. Petersburg, Florida.

Investors with TransAmerica Financial Advisors should know that the firm has disclosed certain conflicts of interest, especially when it comes to its packaged products. Kurta Law is also aware of brokers who have registered with the firm who also have allegations of securities rule violations on their public records.

Review your brokerage firm account statements regularly and contact Kurta Law if you have suspicions about any unexpected losses.

Brokerage Firm and Conflicts of Interest

The Customer Relationship Summary Form (Form CRS) discloses several conflicts of interest as well as fees investors can expect to pay.

• Transaction fees: You pay a fee or a commission every time you buy a new investment. Brokers therefore have an incentive to recommend that you execute trades as often as possible.
• 12b-1 fees: Mutual funds charge 12b-1 fees, management fees, or servicing fees. These fees also offer ongoing payments for the brokerage firm.
• Packaged products: Form CRS notes that TransAmerica Financial Advisors brokers primarily recommend packaged products. Many of the firm’s representatives are only licensed to sell “package” products and cannot provide the full range of broker-dealer investments and services, some of which might come with lower costs. These products may make revenue-sharing payments to the firm that create a conflict of interest.
• Variable products: Variable insurance contracts and annuities pay TransAmerica Financial Advisors a commission that depends on the amount customers choose to invest. These products come with ongoing fees paid to the affiliated insurance company.
• 529 plans include underlying mutual fund fees as well as ongoing fees such as program management and maintenance fees.

Note: These are brokerage firm fees. Advisory accounts come with separate fees. Make sure you know what type of account you’re getting and how fees could affect your investments.

Regulatory Actions

TransAmerica Financial Advisors has 25 regulatory disclosures on its detailed BrokerCheck record. The following list highlights just a few of the most recent.

$4.4 Million FINRA Fine Following Variable Annuity and Mutual Fund Allegations

On December 21, 2020, TransAmerica Financial Advisors consented to the findings that it failed to supervise its registered representatives’ variable annuity recommendations and made disclosures that contained inaccurate information or omitted material information. These inaccurate forms allegedly made certain variable annuity exchanges appear more favorable for the customers than they actually were.

FINRA Rule 2330 requires brokers to have a reasonable basis to believe that their recommendation of a variable annuity purchase or exchange will be suitable for investors. 

The firm also allegedly failed to ensure that customers who purchased mutual fund shares received applicable discounts. As a result, customers allegedly overpaid by $438,239. The firm was ordered to pay customers restitution as well as a $4.4 million fine.

You can read a copy of the AWC here.

SEC Order Following Mutual Fund Allegations

On March 11, 2019, the SEC alleged that TransAmerica Financial Advisors had failed to make disclosures regarding its mutual fund share class selection practices. The firm allegedly commended more expensive mutual funds that charged 12b-1 fees (fees that come with an ongoing payment to the firm).

TransAmerica Financial Advisors shall pay a disgorgement of $5.3 million to customers as well as prejudgment interest of $658,790.64.

$800,000 SEC Fine

According to allegations filed on August 27, 2018, TransAmerica Financial Advisors violated federal securities laws and rules while offering 15 quantitative-model-based mutual funds, variable life insurance investment portfolios, and variable annuity investment portfolios. The firm allegedly launched the products and investment strategies without first confirming that the models worked as intended and/or without disclosing any recognized risks associated with using the models. The subadviser of the products discovered that certain models contained errors that rendered at least one of the models “not fit for purpose.”

The SEC alleged that TransAmerica Financial Advisors distributed marketing materials to its clients without disclosing any risks related to the use of models or verifying that the models worked as intended.

The firm consented to pay a disgorgement (refund to customers) of $1.7 million and a monetary penalty of $800,000.

Brokers Facing Allegations of Misconduct

Kurta Law is aware of the following current or former TransAmerica Financial Advisors who have allegations of misconduct on their records. This is not necessarily a complete list – contact Kurta Law if you have any concerns about your broker’s conduct. 

• Scott Whiteley: https://www.kurtalawfirm.com/blog/scott-whiteley/
• Abtin Bashirazami: https://www.kurtalawfirm.com/blog/abtin-bashirazami/
• Victor Greenland: https://www.kurtalawfirm.com/blog/victor-greenland/
• John Woo: https://www.kurtalawfirm.com/blog/john-woo/
• Benny Ongkobudidjojo: https://www.kurtalawfirm.com/blog/benny-ongkobudidjojo/
• Gary Ziegler: https://www.kurtalawfirm.com/blog/gary-ziegler/
• Julie Johnson: https://www.kurtalawfirm.com/blog/julie-johnson/
• Jodie Brown: https://www.kurtalawfirm.com/blog/jodi-brown/
• Xinxin Lu: https://www.kurtalawfirm.com/blog/xinxin-lu/

Kurta Law Can Help

If you suffered losses after working with a TransAmerica Financial Advisors broker, contact a Kurta Law investment fraud attorney. Our attorneys provide free case evaluations and do not collect a fee unless we win your case. Call (877) 600-0098 or email info@kurtalawfirm.com.