Are you working with Cetera Financial Group and concerned about the investment advice you received? In this comprehensive review, we delve into the inner workings of Cetera Financial Group, exploring their services, complaint history, fee structure, regulatory disclosures, and employee experiences.
Many victims of investment fraud by financial advisors think losses were due to market conditions, however these “losses” would have been avoided with proper advice from their financial advisor.
Haselkorn & Thibaut, a national investment fraud law firm, is currently representing Cetera investors. It is alleged that they improperly sold investment products that were not suitable for them which resulted in substantial losses. If you invested with Cetera Advisor, please call our investment fraud lawyers for a free consultation at 1-800-856-3352.
Cetera Financial Group: An Overview
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Cetera Financial Group is a financial services company that provides an array of services through its subsidiaries. With a network of financial advisors, Cetera offers brokerage, investment advisory, and insurance services to a diverse clientele. With assets under management totaling an impressive $365 billion, it’s no surprise that Cetera has made a name for itself in the financial industry.
Although you cannot directly engage with Cetera as a firm, you can collaborate with a financial advisory firm affiliated with them to access their programs. Cetera Advisors, one of their subsidiaries, boasts over 810 branch offices, making their services widely accessible.
Subsidiaries and Services
Cetera Financial Group’s network comprises several subsidiaries, including Cetera Advisors LLC, Cetera Advisor Networks LLC, Cetera Investment Services LLC, and Securian Financial Services, Inc. Each subsidiary offers a range of financial services tailored to cater to different client needs.
When it comes to the securities utilized in their advisory programs, Cetera offers a diverse selection. Investors can choose from a wide range of financial assets, such as stocks, bonds, call and put options, fixed-income securities, mutual funds, structured products, exchange-traded funds (ETFs), and unit investment trusts (UITs). These investments offer potential rewards but can also involve risk. This extensive range of investment options ensures that clients have access to a variety of financial instruments to achieve their financial goals.
Assets Under Management
As of December 31, 2022, Cetera Financial Group has been entrusted with approximately $322 billion in assets under administration and $115 billion in assets under management. With an average client balance of $236,526, it’s evident that Cetera has established itself as a reliable and trusted financial services provider in the industry.
The Cetera Network of Financial Advisors
The Cetera Network of Financial Advisors is composed of independent retail firms, including Cetera Advisors LLC, Cetera Advisor Networks LLC, and others. This vast network of over 8,000 financial professionals holds multiple certifications, ensuring that clients receive top-notch financial advice and services.
Cetera’s services are accessible to clients across the United States, with a presence in all fifty states as well as Puerto Rico and the U.S. Virgin Islands. This extensive geographic reach ensures that clients from various regions can benefit from the expertise and services offered by Cetera’s network of financial advisors.
Advisor Certifications
Financial advisors within the Cetera network are highly qualified professionals. They possess professional certifications such as Certified Financial Planner (CFP), Chartered Financial Analyst (CFA), Certified Investment Management Analyst (CIMA), and Chartered Alternative Investment Analyst (CAIA). These certifications demonstrate the advisors’ proficiency and knowledge in their respective domains, providing clients with confidence in their services.
For example, CFP certification encompasses financial planning, taxes, insurance, investments, and retirement planning. The CFA certification, on the other hand, covers financial analysis, portfolio management, and ethical and professional standards.
Geographic Reach
Cetera Financial Group operates within the United States through its network of independent retail firms, including Cetera Advisors LLC, Cetera Advisor Networks LLC, and Cetera Investment Services LLC.
Cetera Advisors, headquartered in Greenwood Village, Colorado, serves clients across all 50 states, Puerto Rico, and the U.S. Virgin Islands. This wide-ranging geographic scope ensures that clients have access to Cetera’s financial services, regardless of their location within the United States.
Regulatory Disclosures and Investor Protection
Cetera Financial Group has a significant number of regulatory disclosures, totaling 37 items, which include fines and censures from regulatory authorities for various errors. Cetera, a financial services company, has faced several regulatory problems in recent years.
One notable incident reported by InvestmentNews between October 2019 and July 2020, was when Cetera Advisor Networks was fined $125,000 by the Financial Industry Regulatory Authority (FINRA) for customer privacy breaches. During this period, Cetera failed to ensure that its brokers informed customers about the disclosure of their personal information to a third-party vendor assisting with the transition process. As a result, 26 recruited representatives shared nonpublic personal customer information with the vendor, leading to violations of Regulation S-P by other broker-dealers.
Additionally, Cetera Financial Group and its affiliated broker/dealer firms, including Cetera Advisor Networks, Cetera Advisors, and Cetera Financial Specialists, were fined a total of $1 million by FINRA for inadequate supervision of dually registered representatives.
From 2011 to 2018, the firms failed to establish and enforce a supervisory system for overseeing securities transactions conducted by these representatives, who were registered with both FINRA and the SEC.
The lapses affected more than 47,000 accounts and over $80 billion in client assets managed by unaffiliated registered investment advisors (RIAs). Despite being alerted to the supervision issues by the SEC in multiple examinations, the firms did not implement an effective system for reviewing such transactions. The settlement included censures and fines of $750,000 for Cetera Advisor Networks, $150,000 for Cetera Advisors, and $100,000 for Cetera Financial Specialists.
Regulatory History
Cetera Financial Group has faced regulatory violations and fines in the past. Notably, they received a permanent injunction for contravening Sections 206(2) and 206(4) of the Investment Advisers Act. Additionally, they have been penalized by the Financial Industry Regulatory Authority (FINRA) for failing to adhere to their supervisory obligations.
It’s crucial for potential clients to be aware of Cetera’s regulatory history when considering their services.
Investor Safeguards
Cetera Financial Group provides investor protection through its memberships in the Securities Investor Protection Corporation (SIPC) and the Financial Industry Regulatory Authority, Inc. (FINRA).
These memberships ensure that clients have access to a secure and regulated environment when investing with Cetera and its network of financial advisors.
FINRA Complaints
Cetera, a financial services company, has received various complaints from customers. It’s important to note that the nature and details of customer complaints can vary, and the information available online may not provide a comprehensive view of all the complaints.
Cetera Advisors, a registered investment advisory firm under the Cetera Financial Group, has received disciplinary alerts related to their activities. These alerts cover issues such as activity restriction, attorney/accountant authorization revocation, dismissal upon settlement in court, and false statements or omissions.
Additionally, Cetera Financial Group, which includes Cetera Advisor Networks, Cetera Advisors, and Cetera Financial Specialists, faced regulatory actions and fines imposed by the Financial Industry Regulatory Authority (FINRA) due to alleged deficiencies in supervising dually-registered representatives (DRRs) and their private securities transactions with unaffiliated Registered Investment Advisors (RIAs). The fines were imposed because the firms failed to implement adequate systems and procedures despite being aware of the deficiencies since 2013. These violations impacted thousands of accounts and involved substantial customer assets.
Investors who have experienced losses due to dealings with a Cetera broker with pertinent disclosures on their record should immediately contact investor lawyers. The Financial Industry Regulatory Authority (FINRA) oversees the securities industry in the United States and helps protect investors from potential misconduct by financial professionals.
By filing a complaint with FINRA, investors can seek recourse for any losses incurred as a result of dealings with a Cetera broker.
Conflict of Interest Considerations
When working with Cetera Financial Group, it’s essential to be aware of potential conflicts of interest that may arise. These conflicts could include not achieving the best price for transactions, earning fees, and incentivizing trading more often. Furthermore, Cetera’s broker-dealer affiliation may also present potential conflicts of interest.
Being aware of these potential conflicts can help clients make informed decisions about their investments and ensure that their financial interests are prioritized. By understanding the various factors that could influence financial advice and services, clients can take a more active role in managing their investments and achieving their financial goals.
Fee-based Conflicts
Cetera Financial Group’s fee-based conflicts include revenue sharing fees and mutual fund selection. Revenue sharing fees refer to fees paid by mutual fund companies to Cetera in exchange for recommending their funds to clients. This arrangement could potentially influence the mutual fund selection process, with Cetera favoring funds that provide them with higher revenue sharing fees over lower-cost alternatives.
Clients should be aware of these fee-based conflicts when considering investment recommendations from Cetera and its network of financial advisors.
Affiliation Conflicts
Cetera Financial Group’s broker-dealer affiliation may give rise to potential conflicts of interest, as the firm may not obtain the most favorable price for transactions, earn fees, and incentivize trading more frequently.
Additionally, Cetera has faced penalties from the Securities and Exchange Commission for violating its fiduciary duty and deceiving retail advisory clients by not disclosing conflicts.
Clients should remain vigilant of these affiliation conflicts when working with Cetera Financial Group and ensure that their financial interests are prioritized.
Summary
In summary, Cetera Financial Group offers a wide range of financial services through its network of financial advisors and subsidiaries.
However, potential clients should be aware of potential conflicts of interest and consider employee experiences when evaluating Cetera’s services. By staying informed and actively participating in the management of their investments, clients can confidently work with Cetera Financial Group to achieve their financial goals and secure their financial future.
Haselkorn and Thibaut, a law firm specializing in securities litigation, has taken on the task of investigating Cetera Financial Advisors. The firm is conducting a thorough examination of Cetera Financial Advisors, a subsidiary of Cetera Financial Group, to uncover any potential misconduct or wrongdoing that may have harmed investors.
With their expertise in the field, Haselkorn and Thibaut are dedicated to investigating allegations, analyzing evidence, and representing the interests of affected investors. By conducting this investigation, the law firm aims to provide clarity and potential legal recourse for investors who may have suffered losses or experienced harm due to the actions of Cetera Financial Advisors.
Call us today at 1-800-856-3352 for a free consultation.
Frequently Asked Questions
What does Cetera Financial do?
Cetera Financial Group provides comprehensive financial planning and investment services to individuals, families and business owners. The company leverages their extensive network of experienced advisors to provide tailored strategies that help clients plan for the future with confidence.
Who is Cetera owned by?
Cetera Financial Group is owned by Genstar Capital, a global private equity firm that has consistently been ranked among the top-performing PE funds worldwide. Genstar acquired Cetera in 2019 and has since focused on investments in new technologies to improve the customer experience.
Is Cetera part of Voya?
No, Cetera is not part of Voya. Voya Financial, Inc. completed the sale of Voya Financial Advisors’ (VFA) independent financial planning channel to Cetera Financial Group, Inc. (Cetera) on June 9, 2021.
How does Cetera make money?
Cetera generates revenue by charging a percentage of assets under management, as well as through hourly charges, fixed fees, and commissions for selling certain securities or insurance programs.
This allows Cetera to generate a steady stream of income from their clients.
Who is Cetera owned by?
In summary, Cetera is owned by Genstar Capital Partners, a private equity firm that specializes in financial services and is renowned for its top-performing investments.
