The Utah Division of Securities, alongside multiple states, has secured a $17 million settlement against brokerage firm Edward D. Jones & Co. Edward Jones.
This resolution stems from a multi-year investigation, spurred by concerns over the firm’s advisory practices.
The probe focused on how Edward Jones advised clients to switch from brokerage accounts with front-load commissions to fee-based investment advisory accounts, following the 2016 U.S. Department of Labor Fiduciary Rule.
Investigators found that Edward Jones charged front-load commissions on Class A mutual fund shares in cases where these assets were sold or transferred earlier than intended by clients.
This raised questions about the firm’s supervision of the advice strategy, with particular concern for its adherence to fiduciary standards meant to protect retirement savings.
Margaret Woolley Busse, Executive Director for the Utah Department of Commerce, emphasized the state’s commitment to investor protection, saying, This settlement reflects our commitment to protecting investors in Utah.
As part of the settlement, Edward Jones will pay an administrative fine of approximately $320,000 to each participating jurisdiction, which includes all 50 states, Washington D.C., the U.S. Virgin Islands, and Puerto Rico.
