According to FINRA, Transamerica Capital, Inc. was censured and fined $500,000 for failing to register, or timely register, more than 400 call center personnel who engaged in securities business on the firm's behalf.

The firm used a contracted third-party vendor to administer call centers relating to variable products and insurance products issued by the firm's affiliates. Call center personnel handled customer transaction requests related to securities, including orders for investment of additional premiums, reallocations of contract value among subaccounts, and withdrawals of contract value. These personnel were associated persons of the firm and required registration in the appropriate category based on their functions.

Although the firm determined to register certain call center personnel and advised FINRA of this fact, it failed to register, or timely register, these individuals before they engaged in conduct requiring registration. This meant that unregistered individuals were handling securities transactions for customers, which violates FINRA registration requirements.

Investors should understand that registration requirements exist to ensure that individuals handling securities transactions have demonstrated minimum competency through required examinations and background checks. When firms allow unregistered personnel to conduct securities business, it undermines investor protection. Following this action, the firm made changes to its call centers regarding handling of policyholder requests for variable products, registered approximately 175 individuals who handle such requests, and established policies, procedures, and systems prohibiting unregistered call center personnel from addressing transaction requests involving variable products.