One unique fact about Crown Capital Securities is that the firm is both a registered investment advisor (RIA) and a registered broker-dealer. The independent firm is owned both by an individual and a business entity.
Crown Capital is a financial advisor firm based in Orange, California. The firm oversees more than $909 million in assets. It offers financial planning and investment advisory services to various types of individuals and organizations.
Crown Capital Securities Background
Crown began operations in 1999. Its main shareholders are CEO Darol K. Paulsen and Delta Broker Holding. Today, the firm focuses on providing investment advisory and financial planning services to more than 3,600 individual clients and more than 100 high-net-worth individuals.
Crown Capital Securities Client Types and Minimum Account Sizes
Crown serves a diverse group of clients including the following:
- Individuals who are and aren’t high net worth
- Pension and profit-sharing plans (other than plan participants)
- Corporations or other business entities
Crown generally imposes a minimum account size requirement of $25,000, but these minimums may be negotiable.
Services Offered by Crown Capital Securities
Crown advisors formulate personalized financial plans according to your needs. Your overall plan may cover:
- Retirement planning
- Estate planning
- Trust management
- Cash flow analysis and debt management
- Tax planning
- Corporate planning
- Death and disability
- Real estate
The firm also offers various portfolio management programs, including wrap fee ones, where management fees, brokerage costs and other expenses are bundled into one fee.
Crown Capital Securities Investment Philosophy
Crown creates portfolios with asset allocations it believes will help clients meet their personal long-term financial goals. It does not limit itself in the types of securities it considers, but generally allocates assets across the following sectors and products:
- Mutual funds
- Exchange-traded funds (ETFs)
- Commercial paper
- Certificates of deposit (CDs)
- Variable life insurance products
- Variable annuities
When analyzing these securities, the firm may employ several research methods including technical analysis. This method involves using current and past information about the market in order to discern patterns, which may help the firm make educated assumptions about future price movements.
Crown Capital Securities Fees
Hourly fees for financial planning services typically range from $25 to $500, depending on the scope of services provided. Fixed fees can range from $1,000 to $25,000. For investment management services, the firm generally charges an asset-based fee. Here’s the current fee schedule:
|Account Assets||Annual Fee|
Crown works with various affiliated and non-affiliated firms. In providing services, it may earn compensation from these firms. This relationship may incentivise advisors to recommend specific investments instead of others. That said, Crown has a fiduciary duty to act solely in the best interests of its clients. It must also disclose potential conflicts of interest. In addition, the firm conducts regular reviews of client accounts to ensure fiduciary obligations are being met.
|*Estimated investment management fees do not include brokerage, custodial, third-party manager or other fees, which can vary in amount.|
|Estimated Investment Management Fees at Firm Name*|
|Your Assets||Firm Name Fee Amount|
What to Watch Out For
Within the last 10 years, Crown underwent four disciplinary events. Most recently, in June 2019, the Financial Industry Regulatory Authority (FINRA) claimed the firm failed to maintain a reasonably adequate supervisory system for monitoring mutual fund switches capable of allowing the firm to remain compliant with FINRA regulations. According to SEC disclosure documents, “The firm voluntarily paid approximately $395,000 in restitution to affected customers and without admitting or denying the allegations agreed to a censure and fine of $75,000.”
It's also important to note that Crown Capital operates as both an investment firm and a broker-dealer, meaning some advisors can earn commissions from securities and/or insurance product sales. This can create a conflict of interest between advisors and clients, but the firm says it abides by a fiduciary duty.
Opening an Account With Crown Capital Securities
To open an account with Crown, start by visiting its website at http://www.crowncapitalsecurities.com/. You can also call (714) 547-9481.
Tips for Finding the Right Financial Advisor
- If you’d like to continue comparing investment advisors, we can help. Use SmartAsset’s financial advisor matching tool. Within a few minutes, it connects you to advisors in your area. It also gives you access to their profiles so you can evaluate their credentials and expertise before making a decision.
- Before you hire a financial advisor, make sure you know how they get paid. Advisors typically work on a fee-based or fee-only basis. While they sound interchangeable, they are not, and the difference can have a major effect on your return.
All information was accurate as of the writing of this article.