Have you heard of the Transamerica Financial Advisors Scam? In this article, we are going to answer this resounding question… is Transamerica a Scam or Legit?
Join us in this captivating Review where we will reveal the ins and the outs of Transamerica and uncover the truth behind this company.
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Transamerica might have a nice shiny exterior but what lies beneath the smoke and mirrors? Transamerica started off with integrity and values but what do they represent today? How did the transformation happen?
Do they actually offer a legitimate way to make money to their Financial Advisors? Are their Financial Advisors even up to standard? Would you trust this company with your Grandma’s money? With your money?
Read this before you consider investing or even consider becoming a Financial Advisor.
Transamerica Review – Rating
|Founders||Amadeo P. Giannini|
|Reviews||Transamerica Reviews on Trust Pilot|
Let’s Start with an Introduction to Transamerica
Transamerica was built on the premise that like sunlight, Financial Security should be available to everyone.
In 1904, a young Entrepreneur named Amadeo P. Giannini founded the Bank of Italy located in San Francisco with this premise in mind. This bank later became known as Bank of America. In 1928, Amadeo P. Giannini put the banks in a Holding Company. He named this the Transamerica Corporation.
The Company acquired Occidental Life Insurance Company in 1930. He later renamed this Company to Transamerica Occidental Life Insurance Company.
In the 1980’s, Transamerica began to focus solely on financial services. Transamerica eventually became 3 distinct divisions: Insurance, Investments, and Retirement.
In 1999, Transamerica became a subsidiary of Aegeon. Transamerica owns the World Financial Group.
What do you think of this video overview from Transamerica?
How was the World Financial Group Formed?
The World Financial Alliance was Founded in 1991 by Hubert Humphry. This was shortly after he left Primerica.
In November of 1998, World Financial Alliance was billed 100,000 for “not properly supervising its sales agents.” This was after WMA clients lost nearly $2 million dollars in unregistered investments. In 2000, World Financial Alliance was fined $125, 000 for failure to report over 900 customer complaints.
In June 2001, select assets of World Financial Alliance were purchased by Aegon and
it was renamed to World Financial Group.
The World Financial Group is World Financial Alliance with a new name. WFG’s mission statement is to “serve the financial needs and families typically overlooked by the financial services industry”.
The World Financial Group is a Multi-Level Marketing Company based in Georgia. They sell investment, insurance and various other financial products through a network of distributors that are located in the United States, Canada and Puerto Rico.
World Financial Group has over 3,500 offices in the United States.
World Financial Group has somehow managed to distance itself from its roots with World Financial Alliance.
World Financial Alliance was certainly questionable with allegations of fraud, misrepresentation and false statements. There was also an association with class-action lawsuits and disciplinary action by the National Association of Securities Dealers.
- March 2011 – World Group Securities incurred ten regulatory penalties since 2004. Reported by the Financial Industries Regulatory Authority (FINRA)
- 2004 – Fined $15,000 for allowing representatives to act in registered capacities while their registrations were inactive. This was a result of the representatives’ failure to satisfy NASD’s continuing education requirements. Failure to establish a compliant supervisory system.
- December 2006 – WGS and its brokers were fined $150,000. They were fined by Missouri’s commissioner of securities. They were fined for selling unsuitable products to elderly people. “Variable annuities were allegedly sold to people too old to realize any benefit before they died” was reported.
- April 2007 – WGS was fined $50,000 for failing to supervise some of its representatives in the State of Utah. These representatives were misrepresenting their credentials and services. This happened during free lunch seminars that targeted seniors.
- April 2010 – WGS was fined over $850,000. This was the result of the unauthorized sale of private securities. The Agents accused were in Arizona.
- November 2010 – SEC ordered WGS to pay a monetary penalty of $200,000 for the fraudulent selling of unsuitable securities in California. These were derived from refinancing of the customers’ homes using subprime mortgages.
- January 2018 – 12 life insurance agents at WFG in British Columbia, Canada lost their licenses because they allegedly conspired to cheat on their qualification tests.
How Do the Financial Advisors Make Money at World Financial Group?
The Associates from World Financial Group make money by selling financial services products. They receive a commission from this and from the people that the agents sponsor into the company.
So, they make money from the selling of financial services and from the recruitment of people to do the same. Is this sounding familiar to anyone? This is a typical MLM structure. (multi-level marketing). I do not support MLMs and it is difficult to make money with them.
Salaries from WFG Associates are reported on Glassdoor to be anywhere from $50k to 100k. Check out the salaries below reported on Glassdoor.com.
The people reported are the fortunate ones who ARE making money.
My Final Thoughts on Transamerica and World Financial Group
Transamerica was founded on good principles in the beginning. Things began questionable when World Financial Alliance was acquired and the name was changed to World Financial Group. World Financial Alliance allegedly had some shady dealings. I do not blame the powers that be for changing the name.
I am careful where I invest my money and would not want to associate with any company accused of shady dealings. I would not associate with them from a moral perspective either.
I believe the company is legit as far as being legal. And, it appears that some of the Associates are making money. It is most likely a challenging path to make any substantial money.
I believe that MLMs are unscrupulous. I do not trust any MLM style company.
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