Leaving Edward Jones

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Dec 20, 2006 11:57 pm

Need some help from anyone who can answer a couple questions...


I'm looking at leaving Edward Jones in a week or so and I have been there for 28 months.  When I started they mentioned that if I left before 36 months I would have to pay them back for training costs.  Do they truly come at you for this? 


Also if I leave BEFORE I get my final check has anyone heard of Edward Jones withholding that final check from anyone?


Thanks for your help!!!!

Dec 21, 2006 8:10 am

This is certainly not what you might want to hear, but if you could tough it

out for another 8 month the question will become moot.

Dec 21, 2006 9:23 am

When I left, it was after the 3 year window.  However, I did receive my paycheck after I had left. In fact, I left around the 6th of the month, and my paycheck included my trails for that month (which hit when I was no longer employed). I was pretty surprised. I am assuming it was trails, as I had no access to a commission report, but it was about the same number as my monthly trails, and I obviously did no other business (yes, this is a run-on sentence).

Dec 21, 2006 10:52 am

I understand that if I wait then this question is irrevelant but I cannot wait.


Also does anyone know if the 3 years is from your hire date or from your can-sell date?

Dec 21, 2006 11:07 am

They define 3 years as from your can-sell date (that is when you are registered with the NASD/NYSE).


See my previous post on your other thread for other details.

Dec 24, 2006 12:41 am

To answer your question, no, they won't come after you, as long as you don't go work for another brokerage firm.  If you do, be prepared for a bill. Yes, they send a bill.   

Dec 25, 2006 3:48 pm

It's stated in the contract you signed.

Dec 25, 2006 10:39 pm

A fellow indy in my town left Jones after 35 months (he signed a 36 month non-compete contract) anf they came after him for $10,000.  He settled with them for $2,000.

Dec 26, 2006 5:03 pm

I'm quite familiary with this, as I have 2 friends who left Jones under the 36 month contract.


One - Jones settled with Morgan Stanley for about 1/2 of what was left on the contract (over $30,000).


Two - this guy did not have a big firm backing him.  he received a bill for over $10,000.  He sent a rebuttal letter...the attys for Jones offered to settle for 1/2 of what was owed.  He didn't reply.  Failure to reply to any of their letters (or sending a cease and desist letter to them) results in automatic arbitration proceedings being initiated (a suit is filed against you) with the NASD.


Take the contract seriously, as they do.  Btw...vegabond is right...it is 3 years from your licensing with NASD and SEC...whichever registration date is later is the one they use.

Dec 26, 2006 6:08 pm

ManDate How long did # 2 have left on his contract?  What was his result?  



Anyone else hear any stories like this?  What where the results?  Currently thinking of leaving Jones 6 months prior to my contract expiration and I'd like to get a feel for how much I'd be able to settle for.

Dec 26, 2006 10:07 pm
ManDate:

Two - this guy did not have a big firm backing him.  he received a bill for over $10,000.  He sent a rebuttal letter...the attys for Jones offered to settle for 1/2 of what was owed.  He didn't reply.  Failure to reply to any of their letters (or sending a cease and desist letter to them) results in automatic arbitration proceedings being initiated (a suit is filed against you) with the NASD.


Well that was stupid.  For those of you unschooled in arbitration, know this...that joker will have at least $5,000 worth of heartburn and attorney fees, PLUS, he'll probably still owe the $5K.  Settling for five grand would have been an easy decision for me...what's your freedom worth?!!


MD, if/when the outcome is known, assuming there is no gag order, a post of the results would be appreciated.  A friend of mine settled pre-arbitration, but before he signed the settlement agreement, which included a mutual confidentiality clause, he told me all about it...

Dec 28, 2006 7:32 am
gad12:

ManDate How long did # 2 have left on his contract?  What was his result?  



Anyone else hear any stories like this?  What where the results?  Currently thinking of leaving Jones 6 months prior to my contract expiration and I'd like to get a feel for how much I'd be able to settle for.




If you only have 6 months left, why can you stay and then go?  Seems to me 6 mths is nothing versus fighting with EJ in the end.

Feb 7, 2008 7:29 pm

I left Edward Jones after 10 months. I already had my Series 7. My first day was day one at KYC. And did not do the months of studying for the Series 7 like most others. Now I am very concerned about training costs being charged back to me! Something I did not even consider! Finance is all I know, of course I need to go work for another broker/dealer. Any advice?

Feb 8, 2008 11:29 am
Broker64:

I left Edward Jones after 10 months. I already had my Series 7. My first day was day one at KYC. And did not do the months of studying for the Series 7 like most others. Now I am very concerned about training costs being charged back to me! Something I did not even consider! Finance is all I know, of course I need to go work for another broker/dealer. Any advice?



This is a matter of contract law.  You need to look carefully at you various employment related contracts to determine if you may have agreed to repay training costs.  If you came to them already licensed you should not have had to sign that, but only you can be sure on what you did agree to. 

If there is nothing about repaying, you should be fine (at least on that point).  If your contract includes the typical training costs clause, you have trouble.  No one made you sign a contract, and you're (presumably) a big boy.  I'm not saying I LIKE the training costs clauses, but EDJ is far from alone in using these, and acting to collect on them. 

If you're not sure and you intend to continue working in the industry, get proper legal counsel.  You should have done that BEFORE you left, to protect yourself and to plan an orderly exit so you can bring most of your book with you to a new B/D.  That's probably your biggest challenge - bringing your book with you if you have a significant delay between leaving and starting with a new B/D, especially if you just changed B/D'ers 10 months ago.  This all sounds very odd to me.

Anyway, if you are on the line for repaying training costs, your best bet is to find a B/D who is willing to absorb those costs as part of the cost of hiring you, which could be hard if you have no prospect of bringing over an existing book of business. 

And in the future look FIRST, jump SECOND!

Feb 8, 2008 11:46 am

Another bit of advice.  Call EJ HR and have them fax you a copy of your employment agreement.  It is fairly short and to the point.  Let us know if the training costs are in the contract.

Feb 8, 2008 12:05 pm

10 months=75k

Feb 8, 2008 12:28 pm

Now that is edward jones's 2nd profit center.

He may have signed a different contract since he was already licensed....
Feb 8, 2008 2:02 pm

This topic has to be shared with everyone interested in Jones!

I agree with Broker7 this is nice little  profit center for the Cult!
Feb 8, 2008 2:14 pm
Greenbacks:

This topic has to be shared with everyone interested in Jones!

I agree with Broker7 this is nice little  profit center for the Cult!
 
Most firms make you sign these, and will come after you if you leave for another firm within a certain period.  Not sure where anyone got the idea it was just a Jones thing (well I guess since it is the "thing to do" on this board).
Feb 8, 2008 2:23 pm

Can you name me one other firm that will bill you $75,000 for training if you quit and go to another firm?