The Utah Division of Securities has banded together with multiple states to levy a $17 million settlement against brokerage firm Edward D. Jones & Co., L.P. (Edward Jones), joining a compact forged by the North American Securities Administrators Association (NASAA). As detailed by the Utah Department of Commerce, the settlement stems from a quartet of years’ investigation into how investors were advised to switch from brokerage accounts that incurred front-load commissions to fee-based investment advisory accounts, a move scrutinized in the wake of the 2016 U.S. Department of Labor Fiduciary Rule.
Concerns were raised regarding Edward Jones’s supervision of this advice strategy. Specifically, investigators discovered that the firm charged front-load commissions on Class A mutual fund shares in instances where these assets were sold or transferred earlier than the customers had initially intended. The scrutiny was part of an effort to closely ensure that firms are adhering to the new fiduciary standards established to protect those stashing their funds for retirement. During this multi-state probe, it was found that Edward Jones had failed to adequately monitor the related transactional processes…