SEC says Transamerica Steered Retirement Plan Participants Toward Rollovers
Transamerica Retirement Advisors will reportedly pay a $2.9 million SEC penalty for failing to disclose that it paid advisors incentive compensation to steer retirement plan participants toward rollovers, impacting $1.2 billion in assets from 7,300 individuals between 2017 and 2022, according to an SEC order.
The SEC reportedly found this constituted a breach of fiduciary duty and inadequate conflict disclosures. The firm neither admitted nor denied the findings but reportedly agreed to cease and desist and to distribute the penalty to affected investors. The undisclosed payments were only revealed after the SEC began investigating, and Transamerica has since taken steps to address compliance failures, according to the agency.
Conflict of Interest
A conflict of interest in this case arose because Transamerica Retirement Advisors allegedly paid incentive compensation to its consultants and advisors for recommending that retirement plan participants roll over their plan assets into Transamerica-managed advisory accounts. These payments allegedly created a financial motivation for advisors to promote rollovers, regardless of whether such moves were in the best interest of the participants. By failing to adequately disclose these financial incentives, Transamerica allegedly misled participants who reasonably believed they were receiving unbiased advice. This lack of transparency constituted a breach of fiduciary duty and compromised the integrity of the advice given.
Broker Due Diligence
Under the SEC’s “Regulation Best Interest” standard, brokerage firms must conduct due diligence before recommending investments. If a financial advisor fails to assess risk suitability and investors suffer losses, they may have grounds for a complaint or lawsuit.
Lawsuit Options: Individual FINRA Arbitration vs. Class Action
If you suffered losses with your financial advisor you may have two main legal paths:
- FINRA Arbitration: Best suited for investors with significant losses, typically over $100,000.
- Class Action Lawsuit: More appropriate for multiple investors with smaller claims that may not justify individual litigation.
How to File a Complaint for Investment Losses
If you experienced investment losses with Transamerica Retirement Advisors you may be able to recover compensation through FINRA arbitration.
For a free consultation with a securities attorney, contact The White Law Group at 888-637-5510 today.
About The White Law Group
The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago, Illinois, and Seattle, Washington. The firm represents investors nationwide in claims against brokerage firms through FINRA arbitration. Visit our homepage for more information on investor recovery options.
Last modified: April 30, 2025
