In 1922, Edward D. Jones Sr. founded Edward D. Jones & Co. (“Edward Jones”), a broker/dealer and registered investment adviser. In 1948, his son, Ted Jones, joined the firm and originated the concept of branch offices. In 1968, Ted Jones became the second managing partner of the firm. Since its inception, the company has remained headquartered in St. Louis.
With six managing partners; 15,000 locations; 49,000+ associates across the U.S. and Canada; 8+ million clients; $12.3B in annual revenue; and $1.6T in assets under care (AUC), Edward Jones is one of the largest brokerage firms in the world. In fact, it is the largest brokerage firm in terms of locations in North America and the largest U.S. financial services firm in terms of number of advisors. Its general partner is EDJ Holding Company, Inc. and its limited partner is The Jones Financial Companies, L.L.L.P.
Financial Misconduct at Edward Jones
Edward Jones is licensed by the Financial Industry Regulatory Authority (FINRA), and as such is legally obligated to ensure its brokers are acting lawfully in the interest of their investors. If a client suffers losses as a result of negligent behavior or misconduct from a broker, then the firm may be held legally responsible to repay the damages.
Edward Jones and brokers backed by Edward Jones have a long history of misconduct and complaints, with 228 disclosures (76 regulatory; 2 civil; and 150 arbitrations) listed on FINRA’s BrokerCheck Report.
In December 2004, the U.S. Securities and Exchange Commission (SEC), the National Association of Securities Dealers (NASD), and the New York Stock Exchange (NYSE) settled with Edward Jones concerning allegations that the firm had failed to adequately disclose revenue sharing payments it had received from certain mutual fund families that it had recommended to its customers. As a result, Edward Jones paid a fine of $75M and disclosed the payments on its website.
In August 2015, the SEC ordered Edward Jones to pay a fine of $20M for overcharging retail customers.
In November 2022, Edward Jones agreed to pay the Washington State Department of Financial Institutions, Securities Division a fine of $150,000 and investigative costs of $25,000 for actions that allegedly occurred between 2017 and 2021. The Division alleged that Edward Jones failed to supervise a former financial advisor who allegedly received payments and gifts totaling approximately $550,000 from an elderly customer without disclosing to Edward Jones. The firm also failed to detect the advisor’s undisclosed outside business.
In December 2022, FINRA fined Edward Jones $1.1M for allegedly failing to produce complete and accurate call records related to 10 separate investigations. FINRA also found that from May 2017 to March 2021, the firm “failed to timely or completely produce certain phone records responsive to FINRA document requests” and misrepresented that the firm did not have phone records older than 18 months.
You May Have a Claim. Contact Our Firm Now!
As an investor, you may have a right to recover investments lost through unethical behavior or decisions made against your best interests. Meyer Wilson reclaimed $350 million for the victims of investment fraud or misconduct. Our attorneys are experienced in going up against large investment firms like Edward Jones & Co., and our track record affirms our resources and expertise. Meyer Wilson has represented clients nationwide and internationally, in state and federal courts and in arbitration.
If you believe that you have been the victim of investment fraud or have been recommended unsuitable investments, you may have options. Call Meyer Wilson today!