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Did You Lose Money at Edward Jones?

Securities Lawyer Jonathan Kurta
By: Jonathan Kurta Author
February 22, 2023 at 12:08am

Edward Jones (CRD #: 250) is a registered investment advisory firm and a broker-dealer. It was founded in 1922 by Edward Jones, Sr. This privately held firm has locations across the U.S. and Canada. It serves approximately 17 million customers, according to its website. The headquarters are in St. Louis, Missouri. This firm also operates under the name Edward D. Jones & Co.

Can I Sue Edward Jones?

Yes, but probably not in a civil court. Investors typically sign pre-dispute arbitration agreements as part of their investment contracts. Arbitration agreements require investors to recover their losses through a process called FINRA arbitration instead of a civil court. Consulting with a securities attorney can help you determine if you have a case. Call (877) 600-0098 or email info@kurtalawfirm.com to speak with a stock loss lawyer for free.

Is Edward Jones a Bank?

Edward Jones is best known as a broker-dealer and investment advisory firm, but it does also offer customers an interest-bearing savings account with FDIC protection. According to their Insured Bank Deposit Program Disclosure, There is a fee associated with these accounts, equal to a percentage of the average daily deposit balance. This fee can be as much as 3.75%. According to its Program Description, Edward Jones’ fees “may exceed the amounts paid to clients in the form of interest.”

Edward Jones Services

The firm offers the following financial products:

  • Mutual funds
  • Corporate equity securities
  • Limited partnerships in a secondary market
  • Over-the-counter securities

These investments may be high risk, meaning they are only suitable for investors who have a high net worth and possibly only for investors who plan to hold their investments for a number of years.

Securities Lawyer Jonathan Kurta
Written by: Jonathan Kurta

Jonathan Kurta is an accomplished securities attorney and a founding partner at Kurta Law.

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Edward Jones Broker Fees

You can read the complete list of fees, as well as the fees associated with their investment advisory services, in their Customer Relationship Summary.

  • Brokerage accounts come with fees when investors make trades, as well as markups associated with bonds. According to the firm’s Form CRS: “The more trades in your account, the more you pay us. As a result, we have an incentive to encourage you to trade more often in your account.”
  • Mutual funds, ETFs, and annuities come with built-in operating expenses and ongoing management fees.
  • Both advisory and brokerage accounts are subject to transfer and wire fees, estate services fees, transfer and/or termination fees, and interest for margin accounts.

Conflict of Interest Disclosures

Edward Jones also discloses the following conflicts of interest:

  • The firm has revenue-sharing agreements with certain mutual funds and 529 plan program managers. The revenue is paid to Edward Jones by the product partner and is not charged to the investor, but the firm still has a financial incentive to recommend these types of investments.
  • The Edward Jones Money Market Fund is a proprietary fund that generates revenue for the firm. The firm, therefore, has a conflict of interest when they recommend this fund.
  • Mutual funds and annuities pay the brokerage firm fees or commissions, creating an incentive for brokers to recommend these types of investments over stocks, bonds, or ETFs.
  • Margin accounts also come with interest charges, and advisory accounts charge asset-based fees on margin accounts plus interest

Edward Jones Brokers

Here is a selection of Edward Jones brokers with regulatory actions and investor disputes on their records. These brokers are all either registered with the firm or have registered with the firm in the past. If you worked with any of these brokers and have questions about your account, do not hesitate to contact our securities attorneys.

 

 

Edward Jones’ Reputation and Regulatory Actions

Below is Edward Jones’ recent history of regulatory actions. This is far from a complete list–this firm has a total of 228 disclosures on its record. There are 76 regulatory events, 150 disputes resolved via FINRA arbitration, and two civil events. Visit the firm’s detailed Broker Check record for the complete details concerning regulatory events.

Failure to Supervise Allegations: Washington

According to a disclosure from November 14, 2022, The Washington State Department of Financial Institutions alleged that Edward Jones violated state securities laws by failing to supervise a financial advisor. The financial advisor allegedly received $550,000 from an elderly client without disclosing the payments to the firm. The firm also allegedly failed to detect the financial advisor’s undisclosed outside business. FINRA Rule 3260 requires brokers to receive authorization from their firms before participating in any outside business.

The firm consented to a $150,000 fine.

Alleged Failure to Produce Documents

On December 13, 2022, Edward Jones consented to a $1.1 million fine following allegations that the firm failed to produce certain records in a timely manner, as required by FINRA rules. FINRA was requesting phone records in connection with investigations of alleged misconduct, including unauthorized trading, discretionary trading, and excessive trading. 

Failure to Supervise: Nevada

According to a disclosure dated August 6, 2021, the Nevada Securities Division alleged that Edward Jones failed to supervise its registered representatives to ensure they complied with the Nevada Securities Act. The firm consented to a fine of $50,000.

On August 5, Nevada alleged that Edward Jones failed to supervise a former financial advisor who had offered and sold personal seat licenses for a professional football team to a client without disclosing the sale to the firm. The order also alleged that the advisor never delivered the seats. As a result of the allegations, the firm agreed to pay the Nevada Secretary of State’s Office $50,000.

Recent Lawsuits

Investors should be aware of Edward Jones’ recent lawsuits.

 

  • In 2021, Edward Jones agreed to a $34 million settlement in a discrimination case brought by black financial advisors.
  • As of 2022, Edward Jones is the subject of a class action lawsuit alleging that Edward Jones underpays female advisors.

What Can I Do If I Lost Money?

Investors who lost money with Edward Jones should keep track of their account statements and any conversations they had with their broker. In order to determine if you have a case, contact a securities attorney. Our experienced team can guide you through the process of FINRA arbitration and fight for a fair settlement. Call (877) 600-0098.