Mutual Securities

Kurta Law is investigating recommendations by Mutual Securities (CRD#: 13092) brokers. Mutual Securities is a broker-dealer with headquarters in Camarillo, California.

Mutual Securities has also operated as Cowles, Sabol & Company and Mutual Securities, Inc. of California.

Fees and Conflicts of Interest

Investors should know what types of fees and commissions they may pay as customers of Mutual Securities. Brokerage firms are obligated to disclose their fees and conflicts of interest in Customer Relationship Summary (Form CRS):

• You will be charged fees on each transaction, which incentivize the firm to encourage trading. This may be a separate fee, in the case of stocks and exchange-traded funds (ETFs), or as a markup or markdown to the price, in the case of bonds.
• Mutual funds charge a contingent deferred sales charge based on the share class you own. They also charge annual management fees.
• Annuities and life insurance charge administrative fees, investment expenses, fees for riders, as well as premium, surrender, and mortality and cost of insurance charges.
• Investors may also face additional account fees, such as annual custodian fees, maintenance and inactivity fees, and postage or handling fees for the delivery of trade confirmations and statements.
• You’ll also incur fees for transferring your account or terminating a retirement account.
• You will pay interest on any margin debt balances you accrue.
• Mutual Securities receives compensation through revenue sharing agreements with the managers or sponsors of certain investments and through other agreements that incentivize the firm to recommend these investments.
• The firm also receives compensation from its clearing firm through your account fees or the money balance of your account.
• If you use the services of an investment advisory firm, Mutual Securities may compensate your firm or receive compensation from it for the services Mutual Securities provides.

Broker-Dealer Services

Mutual Securities offers the following investment vehicles as well as stocks and bonds. Investors should be aware that these products may feature high fees and considerable risk:

• Exchange-traded funds (ETFs)
• Mutual funds
• Annuities and life insurance

Regulatory Actions

FINRA and other securities industry regulators who identify misconduct may order broker-dealers to pay fines and restitution to defrauded investors. Investors can review Mutual Securities’ history of several regulatory actions on its detailed BrokerCheck page.

FINRA Censure

On June 21, 2024, FINRA filed a Letter of Acceptance, Waiver & Consent (AWC) alleging that Mutual Securities entered into three settlement agreements from 2017-2022 that contained impermissible confidentiality provisions.

These provisions allegedly limited how customers could communicate with FINRA and had the potential to impede regulatory investigations by FINRA and other regulators.

Mutual Securities was censured and fined $50,000. You can read the full AWC here.

How Can Investors Recover Lost Funds from a Brokerage Firm?

Brokerage firms typically require investors to resolve disputes through FINRA arbitration rather than civil court. FINRA arbitration is designed to be a quicker and cheaper alternative to a civil suit, and a securities attorney can help you file your dispute.

Kurta Law Can Help

Investors who lost money working with a Mutual Securities broker should reach out to an investment fraud lawyer for help. Our attorneys offer free case evaluations and do not charge a fee unless we win your case. Call (877) 600-0098 or email info@kurtalawfirm.com.