2010 – SEC – File No. 3-14132 – In the Matter of World Group Securities, Inc. – Order Instituting Administrative Proceedings Pursuant To Section 15(B) Of The Securities Exchange Act Of 1934, Making Findings, And Imposing Remedial Sanctions – 6p
2022 2025 – Investment Executive – FSRA initiates enforcement action over MGA’s training practices. The regulator alleged a firm’s training instructs life agents to mislead consumers, which the firm refutes, By: IE Staff – [link]
2023 0406 – FSRA issues notice of proposal against World Financial Group Insurance Agency of Canada Inc. – [link]
2023 0406 – Investment Executive – FSRA proposes new conditions on life MGA. Supervision framework “largely based on delegation to upline agents,” regulator alleged, By: Greg Meckbach – [link]
2023 – Aegon – The Next Chapter: Capital Markets Day, London – 100p
(p27) – Transamerica – 3rd largest Life insurance distribution agency in North America via World Financial Group (WFG)
(p27) – Top 10 position in Life Insurance; #1 Indexed Universal Life product1
1 Based on per product sales of Transamerica Life’s FFIUL product
(p97) – Will Fuller – President & CEO of Transamerica
Prior to joining Transamerica, Will served in senior leadership roles for Lincoln Financial Group and Merrill Lynch
2014 – CFA – Literature Review: Investment Professionals and Fiduciary Duties, CFA Institute and Research Foundation – 41p
For example, in 2006, the SEC filed suit against a group of broker/dealers working for World Financial Group (WFG).
These broker/dealers had persuaded customers to refinance their homes through a related mortgage company (Ainsworth Mortgage).
The broker/ dealers then recommended that the clients use the proceeds from refinancing to purchase securities-namely, variable universal life insurance (VUL) policies.
One example given in the complaint involved the marketing director of WFG and a branch manager at Ainsworth Mortgage, who recommended that a client refinance his home with a negative amortization loan and use the proceeds to purchase VUL securities.
The client was a 41-year-old truck driver who barely spoke English, had four young children, and had a combined family income of $15,000 in the year he purchased the VUL.
The transaction required a $9,000 upfront payment and $500 monthly premiums thereafter. The subprime mortgage used to finance this transaction had a substantial prepayment penalty and variable interest payments.
This type of case screams, “Unsuitability!”
A fiduciary standard is not necessary to curb these types of broker/dealer activities.
Perhaps higher penalties, faster disposition of cases, or industry recovery funds would accomplish the removal of bad actors from the industry (Di Lorenzo 2012)
Jarek Chin
Grant Cardone
2022 1031 – Trapper Goldsmith – WFG lifelong dream for Grant Cardone – WFG 2019 convention in Las Vegas – [VIDEO-YouTube-00:11]
World Financial Group (WFG) is a multi-level marketing[4] financial and insurance services company based in Johns Creek, Georgia, a suburb of Atlanta, which sells investment, insurance, and various other financial products through a network of distributors in the United States, Canada, and Puerto Rico.[5][6]
It is wholly owned by Dutch life insurance multinational Aegon and operates primarily under the Transamerica brand in the United States.[7]