World Financial Group

Infobox_Company
company_name = World Financial Group

company_type = Subsidiary
parent = AEGON
foundation = 2001 (under AEGON ownership)
location = 11315 Johns Creek Parkway
Duluth, Georgia 30097-1517
industry = Financial services
products = Life insurance, Variable Universal Life Insurance, Mutual funds, Annuities
revenue =
slogan = "No family left behind."
homepage = [http://www.worldfinancialgroup.com/ www.worldfinancialgroup.com]

World Financial Group (WFG) is a financial services organization based in Duluth, Georgia that markets investment, insurance and mortgage products through a network of associates in the United States and Canada. WFG is a wholly owned subsidiary of The AEGON Group. [cite web|title=2005 Annual Report|work=AEGON Review of Operations: Americas|url=http://www2.aegon.com/annual_report/2005/eng/aegonamericasaa.shtml|accessmonthday=February 02 |accessyear=2007]

WFG's insurance and mortgage lines of business are managed directly by WFG in the United States, while its investment lines of business are managed by its affiliate broker-dealer World Group Securities, Inc.

In Canada, WFG's insurance lines of business are managed by its provincially regulated subsidiary managing general agent World Financial Group Insurance Agency of Canada Inc.; while its investment lines of business are managed by its subsidiary WFG Securities of Canada, Inc., which is a member of the Investment Funds Institute of Canada and the Mutual Fund Dealers Association of Canada. [ [http://www.mfda.ca/members/members.html#Anchor-36588 Mutual Funds Dealers Association of Canada] ] WFG's Canadian head office is located in Vaughan, Ontario.

World Financial Group created and partnered up with Investment Advisors International (IAI), a co-owned investment advisory firm to give clients fee-based actively managed accounts by third-party money managers. IAI has agreements with some of the nation's top investment advisory firms such as Hanlon Investments, Foxhall Capital Management, Curian Capital, CLS Investment Firm, LLC, Flexible Plan Investments, Ltd. and The Institute for Wealth Management.

History

World Financial Group was formed in 2001 from the select purchase of assets by AEGON from the now defunct World Marketing Alliance (WMA). The former company was founded in 1991 by Hubert Humphrey, who subsequently founded World Leadership Group.

Ratings

The Toronto-based WFG was named Canada's best MGA and top firm overall in 2006 and 2007 surveys conducted by "Investment Executive", a newspaper for Canadian financial advisors [cite web|title=August 2006 Investment Executive|url=http://www.investmentexecutive.com/client/en/News/DetailNews.asp?IdPub=134&Id=35020&cat=29&IdSection=29&PageMem=&nbNews=] [cite web|title=August 2007 Investment Executive|url=http://www.investmentexecutive.com/client/en/News/DetailNews.asp?IdPub=150&Id=40344&cat=29&IdSection=29&PageMem=&nbNews=]

ponsorships

In NASCAR, World Financial Group is a major sponsor of Roush Fenway Racing, sponsoring Carl Edwards's ride part-time on the #60 Ford in the Busch Series. Previously, WFG had sponsored Roush Racing on Edwards' #99 Ford in the NEXTEL Cup Series and the #50 Ford in the Craftsman Truck Series. [cite web|title=Roush Fenway Racing Corporate Sponsors|url=http://www.roushracing.com/sponsors]

In 2007 WFG signed a two-year sponsorship agreement with Fox Sports Network and the Pacific Ten Conference (Pac-10). The Pac-10 - known as the "Conference of Champions" - is a NCAA Division 1 college athletic conference that includes 10 of the biggest schools on the West Coast. [cite web|title=Pac-10 Corporate Partners|url=http://www.pac-10.org/sponsorships/pac10-sponsorships.html#a]

On Wednesday, Oct. 3, 2007, WFG agreed to a three-year sponsorship of USA Luge. With the sponsorship WFG will support the athletes and programs of USA Luge as they take part in major competitions around the globe. [cite web|title=USA Luge Corporate Sponsors|url=http://www.usaluge.org/sponsors.php]

Public perception

WFG's stated mission goal is to "serve the financial needs of individuals and families typically overlooked by the financial services industry". [cite web|title=World Financial Group.|url=http://www.wfg-online.ca/whatMakesUsDiff/] It is yet unclear how successfully the company has managed to distance itself from its more controversial predecessor, associated with fraud, misrepresentation and false statements, and the subject of class action lawsuits, and NASD disciplinary action. [cite web|title=Business Wire press release.|url=http://findarticles.com/p/articles/mi_m0EIN/is_2001_Oct_22/ai_79357030] [cite web|title=NASD press release.|url=http://www.finra.org/PressRoom/NewsReleases/2000NewsReleases/P011410]

An April 2008 Bloomberg article also reports on recent accusations by securities regulators in Missouri, Utah, as well as others, aimed at WFG for "misrepresenting investment returns and making unsuitable sales of variable annuities". There have also been cases of private arbitrations "where variable annuities were allegedly sold to people too old to realize any benefit before they died" [cite web|title=Bloomberg Article|url=http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a8N_74GdteOg] .

As well, the 'multigenerational', [cite web|title=World Financial Group.|url=http://www.wfg-online.ca/businessOwnership/MembershipBenefits.asp] and recursive associate-recruiting based compensation [cite web|title=World Financial Group.|url=http://www.wfg-online.ca/businessOwnership/forYourself.asp] business model that WFG follows in Canada places it firmly under classification as a "multi-level-marketing-plan" of business, as classified by the Canadian Competition Act, Section 55 and 55.1, [cite web|title=Canadian Competition Bureau, Competition Act Section 55 and 55.1|url=http://www.competitionbureau.gc.ca/epic/site/cb-bc.nsf/en/01278e.html, ] and any company representative operating in Canada is subject to regulation under such classification. An annual and transition report filed for the parent corporation AEGON, with the SEC also classifies WFG as a "multi-level-marketing group of wealth management advisor networks". [cite web|title=SEC annual and transition report for AEG. 20-F, Item 4.|url=http://sec.edgar-online.com/2003/03/31/0000928385-03-000979/Section7.asp]

Further, "Establishing a tradition that lives on at World Financial, Humphrey (the founder) staged lavish conventions and handed out an assortment of diamond-studded rings and other luxuries to motivate the troops. [cite web|title=Bloomberg Article|url=http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a8N_74GdteOg]

References

External links

* [http://www.worldfinancialgroup.com/ World Financial Group website]
* [http://www.investmentadvisorsinternational.com/ Investment Advisors International website]