Former Transamerica Financial Advisors Broker, Michael R. Mackay, Resigns After Allegations From Customers That He Referred Them To An Unapproved Outside Investment Opportunity
Michael Richard Mackay is a former Financial Advisor at Transamerica Financial Advisors, Inc. in Cincinnati, OH from 2012 to 2019. Michael Mackay has been in the securities industry since 1992 and previously worked at World Group Securities in Duluth, GA, World Equity Group in Cincinnati, OH, WMA Securities in Duluth, GA and John Hancock in Boston, MA.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), Michael Mackay was “permitted to resign” from Transamerica Financial in January 2019 after the firm “received allegations from two customers that the Representative had referred them to an outside investment opportunity that was not approved by the firm.” In 2005, Michael Mackay was discharged from World Group Securities, Inc. in 2005 because he “was alleged to have been involved in commission sharing with a non securities registered individual in connection with the sale of a securities product.”
For a copy of the Michael Mackay’s CRD, click https://brokercheck.finra.org/individual/summary/2279775#disclosuresSection
Unapproved private securities transactions are referred to in the industry as “selling away.” FINRA strictly prohibits financial advisors from “selling away” or selling securities and investments to clients that are not offered by the brokerage firm with which they are employed. For example, it is illegal and a violation of industry rules for a financial advisor to recommend or even suggest that a client invest in the financial advisor’s own business or a business operated by his or her friends or family. It is not necessary that the financial advisor earn any compensation for recommending an outside investment.
The purpose behind this prohibition is to ensure that a financial advisor only offers to sell securities that have been vetted by his or her employer brokerage firm through a rigorous due diligence process. Most brokerage firms have an approved list of investments, products, and research that can be provided or made available to clients. Any deviation by the financial advisor from the approved product list may constitute selling away.
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