Lost Money at Centaurus Financial?
Can I Sue Centaurus Financial? Investor Complaints and Regulatory Actions
Centaurus Financial (CRD #: 30833) is an independent broker/dealer that offers securities, investment advisory services, and insurance products. According to their website, the firm serves 18,000 clients and has over 650 financial advisers at 300-plus branch office locations across the country. Its headquarters are in Anaheim, California.
Centaurus is a dually registered broker-dealer and investment adviser.
Can I Sue Centaurus Financial?
Yes, but probably not through the usual channel of civil court. Investment contracts often feature a “pre-dispute arbitration clause” that requires investors to use FINRA arbitration to resolve their disputes. Arbitration panels perform the same function as a judge and jury. Their decisions are final and binding, making their awards difficult to appeal. Securities attorneys can help you get it right the first time.
What Fees Does Centaurus Charge?
Centaurus charges different types of fees, depending on the account type. For its brokerage accounts, Centaurus may charge the following types of fees, according to its Customer Relationship Summary:
- Brokers earn transaction-based fees when investors buy or sell an investment. Because the firm earns more when investors trade more, they have an incentive to encourage investors to execute more transactions.
- Bonds charge markups or markdowns, which are often included in the price of the bond. It may not always be clear how much the investor is being charged. Investors should always ask their brokers about markup and markdown fees.
- Mutual funds, variable annuities, and alternative investments often feature additional fees. Certain investments, like variable annuities, feature a surrender charge that may come as a surprise.
Additionally, Centaurus discloses that it may charge the following fees:
- Account maintenance fees
- Mutual fund fees
- Variable annuity fees
- Product-level fees
- Account inactivity fees
