Attorney General Alan Wilson announced a $17 million settlement with Edward D. Jones & Co., L.P. The Securities Division of the Attorney General’s Office, part of the North American Securities Administrators Association (NASAA), participated in this settlement following a four-year investigation. This investigation was conducted by 14 state securities regulators and focused on Edward Jones’ handling of customer transitions from brokerage to advisory accounts, prompted by the 2016 U.S. Department of Labor Fiduciary Rule.
The inquiry revealed that Edward Jones charged front-load commissions for Class A mutual fund shares when customers sold or moved these shares earlier than expected. Additionally, gaps were identified in the company’s supervisory procedures regarding these transactions.
Under the terms of the settlement, Edward Jones will pay an administrative fine of about $320,000 to each of the 50 states, Washington D.C., the U.S. Virgin Islands, and Puerto Rico. In determining this resolution, positive performance comparisons between investment advisory accounts and brokerage accounts were considered.
“In partnership with NASAA and other state securities regulators, we will continue to protect Main Street investors and ensure that companies operating in South Carolina follow our securities laws,” stated Attorney General Wilson. “We appreciate Edward Jones’s ongoing cooperation throughout this investigation and settlement process. Firms that offer both brokerage and investment advisory services should be mindful that customers are receiving the services the customer wants at an appropriate price.”
For further information or to submit a complaint, individuals can contact the Securities Division at 803-734-9916 or email [email protected]. More details are available on their website: https://www.scag.gov/inside-the-office/legal-services-division/securities/.
