The Investment Center

The Investment Center (CRD #: 17839) is a brokerage firm with its headquarters in Bedminster, New Jersey. It has been registered with the SEC since 1986. Investors may also have worked with the firm’s affiliated advisory firm, IC Advisory Services. Make sure you understand the difference between the Investment Center’s brokerage firm services and investment advisory services.

If you work with the Investment Center, you should know about the regulatory actions on the firm’s record, as well as the list of potential conflicts of interest.

Fees and Conflicts of Interest

The Investment Center discloses fees as well as conflicts of interest in its Customer Relationship Summary (Form CRS).

The Form CRS suggests that investors ask their broker: “If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?”

• Every time you buy or sell a security, the firm charges a transaction-based fee. This fee motivates the firm to encourage you to trade more often.
• The firm receives compensation in the form of revenue share arrangements made in relation to the sales of certain products. The Investment Center has an incentive to recommend these products over others. You can ask your financial professional about their conflicts of interest before purchasing an investment.
• Mutual funds and annuities offer ongoing compensation for the firm.
• Some Investment Center representatives receive compensation in the form of marketing support for placing business through certain companies, or for selling certain investments
• For stocks and bonds, the transaction-based fee is a separate commission. For bonds, the transaction-based fee is included in the price of the investment, labeled a “mark-down” or “mark-up” fee.
• Investments like mutual funds, exchange-traded funds, annuities, and other packaged programs impose additional fees that reduce the value of your investment over time.
• Non-traded alternative investments and annuities may feature surrender charges.

Keep in Mind When Working with the Investment Center

The Investment Firm does not offer any proprietary products, and only offers advice with respect to a limited menu of products and types of investments.

Not every firm representative can offer the full range of broker-dealer products and services the firm offers.

Representatives are independent contractors affiliated with the broker-dealer. They are compensated based on the percentages of the revenue they generate from your account based on a contract agreed upon when they joined the broker-dealer.

Regulatory Disclosures

The firm’s BrokerCheck record reveals 13 disclosures, which include regulatory actions. Kurta Law believes that firms should take special note of the following:

Texas State Securities Board: Low-Priced Energy Securities

On August 02, 2016, the staff of the Texas State Securities Board allegedly received a complaint from a Texas resident regarding Investment Center and a former Investment Center representative. The representative allegedly raised red flags related to the suitability of the agent’s recommendations for their clients based on their investment profiles. The allegations concerned publicly traded, low-priced securities issued by energy companies.

Financial Industry Regulatory Authority (FINRA) and Supervisory Rules

FINRA Rule 3110 requires that firms establish systems of supervision to maintain their compliance with securities regulations. Their systems of supervision should be able to catch unsuitable recommendations.

Terms of the AWC

The firm consented to a fine of $50,000.

New Jersey Fine Following Alleged Supervisory Deficiencies

There was a similar dispute from New Jersey. The New Jersey Bureau of Securities alleged that The Investment Center failed to establish and enforce reasonable supervisory procedures designed to detect and prevent conduct in violation of the securities law.

New Jersey fined The Investment Center $11,000.

Disciplinary Records for Investment Center Representatives

The firm’s Form CRS reveals that its financial professionals have legal and/or disciplinary history.

Kurta Law is aware of two brokers who are or were associated with The Investment Center who have investor disputes on their records. This is by no means a complete list – make sure to look up your broker’s CRD number on BrokerCheck before starting your investment contract.

• One broker allegedly recommended unsuitable investments.
• Another broker was suspended by FINRA after he allegedly mismarked solicited trades as unsolicited.

What Can I Do If I Lost Money After Working with the Investment Center?

Consider contacting a securities attorney for a free case evaluation. Our attorneys can guide you through the steps of FINRA arbitration, which is the process that most investors have to use in order to recover their investing losses. Many investment contracts preclude suing in civil court. Our attorneys work on contingency, meaning you do not pay a fee unless they win a settlement or award on your behalf.

Call (877) 600-0098 or email info@kurtalawfirm.com.