Mercer Times

Attorney General Matthew J. Platkin and the Division of Consumer Affairs have announced that the Bureau of Securities is part of a $17 million settlement with Edward D. Jones & Co., L.P. This settlement follows an investigation into the broker-dealer's supervision practices regarding the transition of customer accounts from commission-based brokerage to fee-based investment advisory services.

The four-year investigation involved 14 state securities regulators, including New Jersey's Bureau of Securities. It was discovered that Edward Jones had not credited investors for commissions already paid when they were charged advisory fees during account transitions, leading to overcharges. Additionally, deficiencies were found in Edward Jones' supervision of account transfers and fee imposition.

Attorney General Platkin emphasized, "My office will continue to protect individual investors by ensuring that firms comply with our securities laws." Cari Fais, Director of the Division of Consumer Affairs, added that this settlement highlights their commitment to holding firms accountable for meeting standards in New Jersey.

Elizabeth M. Harris, Bureau Chief of the Bureau of Securities, stated, "Firms that offer both brokerage and investment advisory services must ensure that clients are receiving their desired services at an appropriate price."

Under the terms of the settlement, each U.S. state along with Washington D.C., Puerto Rico, and the U.S. Virgin Islands will receive approximately $320,000 as an administrative fine. New Jersey will receive an additional $15,000 to cover investigative costs due to its leadership role in the probe.

The investigation was conducted by Deputy Chief Amy Kopleton and Supervising Investigators Rachel Glasgow and Judith Keilp along with Investigator Perry Traina from the Bureau of Securities within the Division of Consumer Affairs.

The Bureau remains dedicated to protecting investors from fraud and regulating securities activities in New Jersey. Investors can contact them for information on financial professionals or report issues related to investments through various channels provided by the Bureau.