Regulatory Alerts2024-12-20
Commonwealth of Pennsylvania Department of Banking and Securities v. Edward D. Jones & Co., L.P. Consent Agreement and Order
The Pennsylvania Department of Banking and Securities issued a Consent Agreement and Order against Edward D. Jones & Co., L.P. for failing to maintain reasonably designed supervisory procedures regarding the holding periods of Class A mutual fund shares sold to clients transitioning to advisory accounts. The firm retained front-end sales loads from these transactions without fully offsetting them against new advisory fees, resulting in customers paying over ten million dollars in additional costs. As part of the settlement, Edward Jones agreed to pay an administrative fine of $320,754.72 to resolve the investigation without admitting or denying the findings.
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