MSC Approves Settlement Agreement with WFG Securities of Canada Inc.
Winnipeg, MB (October 2, 2014) – The Manitoba Securities Commission (MSC) has settled with the former WFG Securities of Canada Inc. (now known as Transamerica Securities Inc,) for its failure to properly supervise members of its sales team who opened a significant number of leveraged accounts that were unsuitable for its clients.
For this misconduct, WFG has agreed to make a voluntary payment of $250,000 to the Minister of Finance. The company has also agreed to pay $20,000 toward the cost of staff’s extensive investigation into these matters.
This settlement follows allegations by MSC staff that WFG approved the opening of several client accounts in which money was borrowed to purchase securities (known as “leveraged accounts”) when such a strategy was unsuitable given the clients’ investment knowledge, income, risk tolerance and/or investment objectives.
The Manitoba Securities Commission is a division of the Manitoba Financial Services Agency, a Special Operating Agency of the Government of Manitoba that protects investors and promotes fair and efficient capital markets throughout the province. You may view the settlement agreement at http://www.msc.gov.mb.ca/legal_docs/orders/6997_transamerica.pdf.
Please visit the Canadian Securities Administrators’ Disciplined Persons List for information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA).
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Manitoba Securities Commission