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Can You Trust Coach Pete D'Arruda and Capital Financial Advisory Group?

If you live in the Triangle, you’ve likely heard of Capital Financial Advisory Group and its founder, Pete D’Arruda, aka “Coach Pete.” Capital Financial Advisory Group spends a ton of money buying radio and TV time, but behind the heavy marketing lies a reality that every investor should know—especially if you’re considering entrusting them with your retirement.

Let’s take a closer look at what we’ve uncovered about Capital Financial and why you may want to think twice.

Coach Pete Claims They've Never Had a  Complaint - Is This True?

In commercials and on his radio show Coach Pete insists that his firm has never received a single complaint. Unfortunately, that statement doesn’t hold up under scrutiny. Through a public records request, we found that eight formal complaints have been filed against Capital Financial Advisory Group with the North Carolina Department of Insurance since 2020. These complaints are tied to annuity products—a key part of Capital’s business.

Even more concerning, as of March 2025, the North Carolina Securities Division confirmed an open investigation into client complaints regarding Capital Financial. See a link to our YouTube video below for more details on these complaints. 

Honesty and full disclosure should be table stakes for any advisor. If Coach Pete can’t be transparent about complaints, what else might be hidden?


No Commissions? That’s Financial Hocus Pocus

Coach Pete repeatedly says “We don’t take commissions out of your money.” But when we reviewed Capital Financial’s own Form ADV—a required regulatory disclosure—it tells a different story.

According to their filing:

“If you purchase an insurance product from Capital Financial, they will receive a commission for selling it.”

The reality? These commissions are often substantial and directly linked to how much you invest. That means your money is funding those commissions, even if it’s not line-itemed on your statement. To make matters worse, many annuities sold by Capital Financial Advisory Group carry surrender fees as high as 15% if you change your mind within the first few years. Much of that fee goes toward paying Capital’s commission.

At Ark Royal, we believe in total transparency. You’ll always know how we’re compensated—and you’ll never face a surrender penalty if you later decide we aren’t a good fit for you.


Financial Termites? Capital Financial Has Fee Infestations

Coach Pete loves to warn listeners about hidden fees and commissions or what he terms “financial termites.” But when we reviewed an actual investment proposal from Capital Financial Advisory Group, we found Coach Pete may be the termite.

In the proposal we reviewed, Capital Financial recommend a third-party investment manager with whom they share fees and the total fee is a whopping 2.65% per year!

Let’s compare:

  • Typical advisor fee: ~1.00%
  • Average mutual fund fee (per Morningstar 2023): 0.36%
  • Total average cost: ~1.36%

At 2.65%, Capital’s proposal is well in excess of 50% more than the industry average from a guy who claims to save you money on fees. If this is what Coach Pete considers a smart financial move, we think it’s time to call in the Orkin man.

 

Fiduciary… or Just More Mumbo Jumbo?

One of Pete’s favorite buzzwords is “fiduciary.” He repeated claims that he works in your best interest, but here’s the truth: fiduciary duty isn’t an opinion—it’s a legal obligation, and the rules are clear. According to the SEC and FINRA, when an advisor sells commission-based products, they’re not acting in the client's best interest - which is the requirement of  a fiduciary.

Even Capital Financial’s own Form ADV admits this in bold type on page 11 of their Form ADV. This is yet another case of misleading consumers language that could cause confusion—and costly mistakes—for retirees.

 

So, Can You Trust Coach Pete?

Let’s recap:

  • 8+ formal complaints filed since 2020
  • Open investigation by the NC Securities Division
  • Misleading claims about commissions
  • Excessive fees
  • Deceptive use of the fiduciary label

At Ark Royal Wealth Management, we believe there’s a better way.

✅ You work with a team of Ark Royal CERTIFIED FINANCIAL PLANNERS™ ✅ We’re fee-only—never commissions ✅ We always and only work as a fiduciary ✅ And we’re always truthful, trustworthy, and transparent

If you’re ready for advice that puts you first, we’d love to talk.

Call us today to schedule a free consultation.