Edward Jones Settles Multistate Investigation into Commissions and Supervisory Procedures

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  • New Jersey AG Matthew Platkin has settled with Edward D. Jones & Co., L.P., as part of a multistate investigation that included 14 states and the North American Securities Administrators Association, over allegations that the broker-dealer overcharged customers and failed to adequately supervise its financial professionals when moving commission-based brokerage accounts to fee-based investment advisory accounts in violation of state securities laws.
  • As described in the settlement agreement, Edward Jones allegedly failed to credit customers for commissions that had already been paid when collecting advisory fees. In addition, the multistate investigation also found alleged gaps in how Edward Jones supervised the transfer of customer accounts and the imposition of fees.
  • According to the AG’s press release, Edward Jones will pay all states, Washington, D.C., the U.S. Virgin Islands, and Puerto Rico an administrative fine of approximately $320,000 each, and New Jersey will receive an additional $15,000 in investigative costs.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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