Century Securities Associates, Inc. is a broker-dealer and financial advisor firm that works directly with independent financial advisors to provide business and investment support so that they can operate effectively. As a result, Century does not work directly with investor clients. The firm is located in St. Louis, Missouri. Century's network manages nearly a billion dollars in client assets.
This is a fee-based firm. That means the firm and some of its advisors can receive commissions from the sale of certain securities or insurance products. This differs from the structure of a fee-only firm, which earns all of its compensation from client-paid fees.
Century Securities Associates Background
Century Securities Associates was founded in 1991. It later registered with the SEC as a registered investment advisor (RIA) in 1993. Stifel Financial Corp., a publically traded company, is the owner of Century. Stifel's stock shares under the ticker "SF." Advisors that work in the Century advisor network may be financially certified, including certified financial planners (CFPs) and chartered financial analysts (CFAs).
Century Securities Associates Client Types and Minimum Account Sizes
Century Securities Associates works with a network of independent financial advisors, providing them with business support. These advisors themselves work with a range of different clients, including both institutions and individuals. Most clients in the firm's network are individuals, and the majority of those individuals don't have a high net worth. Institutional clients include pensions, profit-sharing plans, charities, governments and businesses.
Certain investment programs at Century carry minimum investment requirements. They go as follows:
- Opportunity: $25,000 - $200,000
- Spectrum and Custom Advisory Portfolio Programs: $50,000
- Solutions and Horizon Programs: $25,000
- Fundamentals Program: $5,000 - $100,000
- Connect Program: $50,000 - $100,000
- Vantage Program: $50,000
- Summit Program: $1,000,000
Some programs and portfolios in the Connect Program may have higher minimum account requirements that range up to $20 million. Advisors may negotiate certain minimums if they choose.
Services Offered by Century Securities Associates
Century Securities Associates itself offers business support services to a network of independent financial advisors. These advisors take advantage of Century's services to whatever degree they want, helping them provide their own clients with investment management, financial planning and many other financial advisory services.
Century provides its advisors with access to a range of investment portfolios and programs to help them effectively invest client assets. As referred to above, portfolios and programs include:
- Opportunity
- Spectrum and Custom Advisory Portfolio Programs
- Solutions and Horizon Programs
- Fundamentals Program
- Connect Program
- Vantage Program
- Summit Program
Century is a part of Stifel, and many programs are offered through Stifel itself. Programs may be broken down into more specific categories, such as mutual fund- or exchange-traded fund (ETF)-focused programs.
Century Securities Associates Investment Philosophy
Since Century Securities Associates works with a large network of independent firms, it's difficult to pin down a specific investment philosophy that reigns supreme. However, advisors will always look to tailor their investment services to the needs of clients. While specific methods may vary, they tend to meet with clients to determine their overall financial situation and investment objectives. They then use the information gathered to determine a suitable investment strategy.
Advisors may invest client assets in one or several programs and portfolios. They may also invest client assets without using a model portfolio. In the end, it's ultimately the decision of the advisor who's working directly with the client.
Fees Under Century Securities Associates
Most accounts at Century, including those who take advantage of Stifel portfolios, are charged a wrap fee of up to 2.50% of assets under management (AUM) annually. To clarify, a wrap fee program is one in which all advisory, transactional and trading fees are combined into a single rate. The fees you're charged will depend on a number of factors, including the investments your assets are invested in and what program your advisor uses to manage your funds.
The lone exceptions to the above are Century's Vantage and Summit programs. For the former, client fees are based on transaction-based commission costs. For the latter, you'll pay a flat annual advisory fee of up to 1.35%, with transactional costs being extra.
What to Watch Out For
Century Securities Associates has three disclosures listed on its Form ADV. Two of these disclosures relate to advisory affiliates of the firm, whereas the final one belongs to the firm directly. This last disclosure is in relation to a situation where the firm allowed some of its advisors to recommend non-traditional ETFs to customers without the advisors completing an adequate analysis of the securities. This issue was resolved in 2014, and it resulted in the firm receiving a $100,000 fine and a censure order.
Century is also a fee-based firm. In turn, many of the advisors in its network are dually registered as broker-dealer representatives or insurance agents. These advisors can receive commissions from the sale of certain financial products to clients, which causes a potential conflict of interest. However, the firm is still a fiduciary, meaning it is legally obligated to act in the best interests of clients at all times.
Opening an Account With Century Securities Associates
While you can't work directly with Century Securities Associates, you can work with an advisor in the firm's network. For more information, reach out directly to one of these firms, or contact Century for more information. You can also call (314) 342-4051 if you prefer working over the phone.
All information is accurate as of the writing of this article.
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