--- title: SEC Charges Florida Firm with Perpetuating False Fee Discounts and Policy and Procedures Failures description: SEC Charges Florida Firm with Perpetuating False Fee Discounts and Policy and Procedures Failures image: https://resources.jackolg.com/hs-fs/file-3921201217-png/blog-files/roundicons-free-set-111.png --- [![Jacko Law Group, PC - Securities Law](https://resources.jackolg.com/hubfs/Jackolawgroup%20February2018/image/brand.png)](http://www.jackolg.com/) Call Today for a Consultation San Diego 619-298-2880 San Francisco 415-766-3599 Los Angeles 213-631-2549 Menu [Contact](http://www.jackolg.com/Contact.shtml) - [Home](http://www.jackolg.com/) - [Firm Overview](http://www.jackolg.com/Firm-Overview/) - [Professionals](http://www.jackolg.com/Professionals/) - [Events](http://www.jackolg.com/Events.shtml) - [News](http://www.jackolg.com/News-Room/) - [Blog](http://www.jackolg.com/blog/) - [Videos](http://www.jackolg.com/Videos.shtml) - [Contact](http://www.jackolg.com/Contact.shtml) # Understand. 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View Our Practice Areas - [SEC/FINRA Regulatory Counsel](http://www.jackolg.com/Regulatory-Examinations-and-Inquiries-SEC-and-FINRA/) - [Private Equity & Hedge Fund Counsel](http://www.jackolg.com/Private-Equity-Counsel/) - [Investment Adviser Services](http://www.jackolg.com/Legal-Considerations-for-Breaking-Away/Investment-Adviser-Counsel.shtml) - [Breakaways And Transitions](http://www.jackolg.com/Legal-Considerations-for-Breaking-Away/) - [General Corporate Counsel](http://www.jackolg.com/Corporate-Counsel/) - [Broker- Dealer Counsel](http://www.jackolg.com/Broker-Dealer-Counsel/) #### News - [Legal Tips](http://www.jackolg.com/News-Room/) - [Publications](http://www.jackolg.com/News-Room/Publications.shtml) - [Blog](http://www.jackolg.com/blog/) # Jacko Law Group Blog # SEC Charges Florida Firm with Perpetuating False Fee Discounts and Policy and Procedures Failures [![RoundIcons-Free-Set-11](https://resources.jackolg.com/hs-fs/file-3921201217-png/blog-files/roundicons-free-set-111.png?width=128&height=128&name=roundicons-free-set-111.png)](https://resources.jackolg.com/hs-fs/file-3921201217-png/blog-files/roundicons-free-set-111.png)A St. Petersburg, Florida-based financial services firm was recently charged with inappropriately-calculated fee discounts and inadequate policies and procedures (“P&P”). Charges were filed against Transamerica Financial Advisors (“Transamerica”) by the [Securities and Exchange Commission (“SEC”)](http://www.sec.gov/) at the beginning of April 2014. The SEC found, through examinations and a later investigation based on the examination result, that Transamerica falsely offered advisory fee discounts to their clients [“when they increased their assets in certain investment programs,”](http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370541392449#.Uz8otNJOXow) for which they would become eligible for discounts by [“aggregat\[ing\] the values of related accounts.”](http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370541392449#.Uz8otNJOXow) The aggregation requests for discounted fees were not applied in all client accounts, causing certain [“retail investors to overpay for advisory services in thousands of client accounts.”](http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370541392449#.Uz8otNJOXow) In addition to the falsely-applied fee discounts, the SEC found inadequacy in Transamerica’s policy and procedures and weaknesses in the firm’s internal controls. The firm-wide [“conflicting policies”](http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370541392449#.Uz8otNJOXow) about providing discounted fees with aggregation requests contributed greatly to the fee charge discrepancies. Although a 2010 SEC investigation of a Transamerica branch office found aggregation issues, the firm failed to evaluate and unify the policies and procedures of its remaining branch offices, which lead to additional [aggregation problems at Transamerica’s headquarters in 2012](http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370541392449#.Uz8otNJOXow). It is imperative for firms to evaluate the adequacy and consistency of applying policies and procedures to actual business practices. 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