Charles KC Chan (CRD #2894827) Has a Customer Dispute Disclosure on FINRA BrokerCheck

Charles KC Chan (CRD #2894827) is a broker with a customer dispute on FINRA BrokerCheck. We reviewed his BrokerCheck report on April 21, 2026. It reflects one customer dispute. If you invested with Charles Chan and have concerns, keep reading.

BrokerCheck link: BrokerCheck

BrokerCheck report: BrokerCheck Report (PDF)

Investor Disputes / Customer Complaints

Charles Chan’s FINRA BrokerCheck Report reflects one customer dispute disclosure. A summary of the dispute is below:

On February 23, 2026, claimants alleged unsuitable recommendations and excessive concentration risk. Charles Chan’s FINRA BrokerCheck lists the product type as equity listed (common and preferred stock), and the claim seeks $108,000 in damages. The matter remains pending. Charles Chan’s FINRA BrokerCheck identifies Avantax Investment Services, Inc. as the employing firm when the activity at issue occurred.

Rule Summary #1: FINRA Rule 2111 (Suitability)

FINRA Rule 2111 requires a reasonable basis to believe a recommendation is suitable for the customer based on the customer’s investment profile. Claims about unsuitable recommendations or overconcentration often turn on whether the recommendation fit the customer’s needs, risk tolerance, and financial situation.

Rule Summary #2: FINRA Rule 2090 (Know Your Customer)

FINRA Rule 2090 requires brokers and firms to use reasonable diligence to know the essential facts about each customer. That matters when a claim says an account became too concentrated or too risky for the customer’s objectives.

Why This Matters to Investors (Regulation Best Interest)

Regulation Best Interest (Reg BI) is a U.S. securities regulation. It strengthens the standard of conduct that broker-dealers owe to retail investors. It applies when they recommend securities transactions or investment strategies. The U.S. Securities and Exchange Commission adopted Reg BI. It became effective on June 30, 2020. Reg BI aims to protect investors while preserving access to brokerage products and services.

Reg BI requires broker-dealers and financial advisors to act in a retail customer’s best interest at the time of a recommendation. They must not place their own financial or other interests ahead of the customer’s. This standard is higher than the older “suitability” rule. Suitability meant a recommendation only had to be appropriate. It did not have to be the best option or free of conflicts.

Reg BI has four key obligations:

1. Disclosure Obligation – Broker-dealers must disclose material facts about the relationship and the recommendation. This includes fees, the scope of services, and conflicts of interest.

2. Care Obligation – Broker-dealers must use reasonable diligence, care, and skill. They must consider costs, risks, and alternatives when making a recommendation.

3. Conflict of Interest Obligation – Firms must identify conflicts of interest. They must disclose them and mitigate or eliminate them. This includes conflicts that create incentives to favor one product over another.

4. Compliance Obligation – Firms must maintain policies and procedures. Those policies should be designed to ensure compliance with Reg BI as a whole.

Reg BI applies to each recommendation. It is not a continuous duty like the fiduciary standard for registered investment advisers. Even so, it narrows the gap. It puts more focus on costs, conflicts, and investor-focused decision-making.

Overall, Regulation Best Interest promotes transparency. It also aims to improve the quality of investment recommendations. It is designed to reinforce trust between retail investors and broker-dealers in the U.S. securities markets.

Background Information (from BrokerCheck)

Based on His FINRA BrokerCheck report, Charles Chan:

Is currently registered with Cetera Wealth Services, LLC.

Has passed the Securities Industry Essentials (SIE) exam. Charles Chan has passed Series 7. He has also passed Series 65 and Series 63.

Was previously registered with firms that include Avantax Investment Services, Inc. and Avantax Advisory Services.

Kurta Law Can Help

If you have worked with Charles Chan and you have concerns about his activity, Kurta Law may be able to help you evaluate your legal options. A securities attorney can help you assess potential causes of action and determine whether your losses may be recoverable through FINRA arbitration or other avenues. Contact Kurta Law at 877-600-0098 or email info@kurtalawfirm.com for a free consultation.

Helpful resources: Overconcentration | Securities Attorney

For nearly 20 years, Kurta Law has advocated for investors and helped hold financial professionals accountable. Our firm represents clients nationwide in securities arbitration and related disputes. If you believe a broker or firm mishandled your account, an attorney can review the facts and explain possible next steps.