Transamerica Financial Advisors is fined $ 4.4 million by Finra for supervision!

Finra (US Financial Industry Supervision Bureau) announced this Monday that the Broorators' Financial Advisors, Inc. (Hereinafter referred to as "TFA" is fined $ 4.4 million, the company is not It can reasonably supervise the recommendations of these three kinds of products such as variable annuities, common funds, and 529 planned stocks. TFA has also agreed to pay about $ 4.4 million to approximately 2,400 customers.

According to Finra's survey, from May 1, 2010, the TFA failed to register the recommendation of the registered representative of variable annuity. During that period, TFA variable annuity sales commission accounted for more than 40% of the company's total income, but due to the system of supervision of variable annuity sales and transactions, there is a variety of violations in the sales process of variable annuity. Practical behavior. Most importantly, the company failed to find some registration representatives, deliberately underestimating the revenue of existing variable annuity, exaggerating the revenue of new variable annuity, and made thousands of false statements to customers.

From January 1, 2009, During November 15, 2016, TFA failed to supervise its registration representative sales of specific common funds. Finra finds that TFA has made it registered representatives to determine the dealership quota given by customers to buy a common fund, and cannot provide guidance to their registration representatives, and have not established a system to verify that the reduction is correct. Finally, the reduction quota of about 438,239 US dollars cannot be used.

From May 1, 2010, During May 31, 2015, TFA failed to supervise its registration representative to the recommended stock category of 529 savings plan. The TFA did not guide its registration representative to recognize that the importance of considering the difference in shares at 529 planning stocks, and has not provided the necessary information to assist the regulatory agency to assess whether the recommendation of the 529 planned stock is reasonable.

Jessica Hopper, the head of Finra, Executive Vice President and Law Enforcement Department, said: "Finra Member Company must specially cautious, reasonable training and supervision of the registration representatives of these products when selling variable annuity, common funds and 529 plans. .Finra will continue to perform the mission of protecting investors by ensuring compensation for victims. "

This time, Finra is discovered in the periodic inspection of TFA. TRANSAMERICA FINANCIAL ADVISORS, INC. The accusation of FINRA is not set, but the survey results agree.