New Leaving Edward Jones

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Feb 27, 2008 8:29 am

I had the same thoughts as you  around year 2, did alot of research, after weighing the pros and cons...decided to coast thru year 3 and them make my step to indy, and avoided battling the company attorneys..   From several instances that I have seen and heard, it's possible to get a job in this industry as long as you have your 7, there was a broker who was a high producer that got fired for forging signatures (for commissionable profit), after getting hammered by NASD (now finra),

he was soon hired by a major wirehouse.
Feb 27, 2008 2:16 pm

I have an appointment with a wirehouse soon.  I know of an FA that had his contract bought out by them.. I wonder though if the contract can be cut in half..and my share is about $20K, if I should just go indy.  I was already licensed and brought over substantial AUM to an existing EJ office.

Feb 27, 2008 3:05 pm

So, you didn't go through S7, 66, KYC, Eval/Grad, PDP, and all that jazz with Jones?  You took over an already existing office? 

 
The main beef with Jones and guys leaving in the first three years is all the money they spend to build an office for you and train you.  If you were a transfer broker who took over an existing office, they probably don't have all that much invested in you.  Since they don't give up front money, there's nothing there.  Just a thought.
Feb 27, 2008 3:20 pm

Spaceman,


I have been a broker for 13 years.  Got offered a nice office..I liked it  and took the position w/o researching the Jones philosophy. Already had my licenses.. had to do the classes along with seg 2,3. I'm scheduled for 4 class next month.  The issue was with options, as well as many many FSpends and PEND messeges..I blow an hour a day answering.. Everything I do is above board..but when I sell a stock in 2-30 days....I get hammered.
Buy and hold does not work for my advisement, so I need to go elsewhere.  Sorry about blowing steam..the client loss was just the final straw..
 
Seriously, how any FS do you have to answer in a week??
Feb 27, 2008 3:24 pm
Jonesness:

I have an appointment with a wirehouse soon.  I know of an FA that had his contract bought out by them.. I wonder though if the contract can be cut in half..and my share is about $20K, if I should just go indy.  I was already licensed and brought over substantial AUM to an existing EJ office.



You mentioned earlier you weren't really sure if you had signed a non-compete or non-solicit, or if there was some $72K figure - you were going to dig out your contract.  Now you're speculating about splitting your 'share.'

You really need to read your contract to be very clear on EXACTLY what terms you agreed to when you joined EDJ.   What specifically does your contract say?

Feb 27, 2008 3:36 pm

Morphious,

I think it was the standard contract.   I looked for it last night, and it is also not at my office.  Before I call HR (as recommended by a kind forum member), i am going to get everything ready, as I know that calling HR for my contract is an automatic red flag.
By scanning this forum, it looks like a prorated amount..and then about 1/2 that will be the fina requested amount.. if that is the case, indy might be better than wirehouse for me.
Feb 27, 2008 3:42 pm

why do you say that?

Feb 27, 2008 3:47 pm

??please complete your thought.

 
What is "that?"
Feb 27, 2008 3:55 pm
Jonesness:

Morphious,

I think it was the standard contract.   I looked for it last night, and it is also not at my office.  Before I call HR (as recommended by a kind forum member), i am going to get everything ready, as I know that calling HR for my contract is an automatic red flag.
By scanning this forum, it looks like a prorated amount..and then about 1/2 that will be the fina requested amount.. if that is the case, indy might be better than wirehouse for me.



Gotcha.  You're right asking for a copy of your contract will be a red flag, but you definitely want to be clear on your contract before you act, as your potential liabilities may influence your decision or at least the timing.  So it may be the lesser of two evils.

One key point - beyond whatever wording Jones typically uses for standard non-compete or non-solicit clauses - involves the critical issue of repaying training costs.  If I understand you correctly that you came to Jones already licensed with an established book, you should not have even been asked to sign a contract with training costs repayment.  And I believe Jones does not pay upfront money (forgivable loans), so I can't really imagine why you would owe any real money to get out.  You may be free and clear from that $ standpoint - not that Jones or any b/d will make it easy on you.

But you won't be able to be sure of that important point just going off of what the standard contract might say.  You're really going to need copies of any/all employment agreements you signed to do that.

Good luck.


Feb 27, 2008 4:10 pm
Jonesness:

Spaceman,


I have been a broker for 13 years.  Got offered a nice office..I liked it  and took the position w/o researching the Jones philosophy. Already had my licenses.. had to do the classes along with seg 2,3. I'm scheduled for 4 class next month.  The issue was with options, as well as many many FSpends and PEND messeges..I blow an hour a day answering.. Everything I do is above board..but when I sell a stock in 2-30 days....I get hammered.
Buy and hold does not work for my advisement, so I need to go elsewhere.  Sorry about blowing steam..the client loss was just the final straw..
 
Seriously, how any FS do you have to answer in a week??
 
More and more it seems like.  I get an FSPend for EVERY mutual fund sell I do.  I've been getting them for some bonds I've traded recently.  Typically, maybe a couple a week on average. 
 
Jones is a buy and hold kind of company.  Our region just lost a guy to LPL because he ran a biz like yours.  Jones isn't for everyone.  If I were you, I'd take my clients and go indy. 
Feb 27, 2008 4:22 pm
Jonesness:

??please complete your thought.

 
What is "that?"
Feb 27, 2008 4:23 pm

Morphious,

Thanks for your insight..you reinforced the direction I am going.  After my meeting with the wirehouse, I will be able to decide either them or indy, I need to set up an lpl and RJ meeting to see if they can assist in moving.  If I cannot find my contract tonight, the HR phone call will be the last thing I do before I quit.  Getting fired may still not be out of the question though.
Feb 27, 2008 4:25 pm

"fired for not following co policy" could be public info for any future prospect OR B/D to access forever

Feb 27, 2008 4:32 pm

Spaceman,

I got a pending last week asking for my FS to be more specific, my field supervisor wants me to write an essay for each transaction.   I knew when I started that it might not be a fit, I cleared my advising style with my RL and he has backed me up, but FS is always on my back about much of nothing.  Oh well....I'm definitely on my way out...hopefully I can make my move without causing too many waves
Feb 27, 2008 4:36 pm
newnew:

"fired for not following co policy" could be public info for any future prospect OR B/D to access forever

 
there are brokers of fired for sexual harrassment, discretionary trading, fraud, but they go on to another company..I definitely do not condone any of that...I'm a clean sheet for now..   I probably will not go that route, but who knows, the starbucks across the street is hiring
Feb 27, 2008 4:41 pm

Compliance is a pain in the a** everywhere.  The difference is at EDJ, the failed broker that is your compliance officer had only 2 years of industry experience before he washed out, and he only gets paid $40,000-50,000 to be your "supervisor."  Guess what kind of quality that attracts.

 
I don't agree with my compliance officer all of the time, and will readily admit (and even tell him on occasion) that he is frequently being a pain in the a** over trivial matters.  However, overall he is much better informed than FS was at EDJ.  He also has experience with a couple of different firms, so he hasn't been indoctrinated into the idea that the only proper investments are 30 year bonds and A share mutual funds, neither of which are ever appropriate to sell.
Feb 27, 2008 4:57 pm
Jonesness:

Morphious,

Thanks for your insight..you reinforced the direction I am going.  After my meeting with the wirehouse, I will be able to decide either them or indy, I need to set up an lpl and RJ meeting to see if they can assist in moving.  If I cannot find my contract tonight, the HR phone call will be the last thing I do before I quit.  Getting fired may still not be out of the question though.



OK, even though you didn't specifically address the question of training costs in your answer I'm going to assume you have this liability since you're still implying it's an issue.  Several further points for you.

As you interview with the wirehouse and the indy b/ds, make sure you ask up front about their absorbing any costs you may incur to leave EDJ.  Depending on your production they should certainly pick up those costs if you negotiate it.

Second, I would not wait to ask for the contract as the last thing.  The information contained in there is too central to PLANNING what you want to do and when.  Otherwise it's 'ready, shoot, aim!'  If you ask for a copy well before a move things can cool down again before you actually do move.

Finally, be very careful about this getting fired on purpose route.  The indys you mention are still b/ds and all file U5s when a rep leaves, so whatever they write is likely to follow you as a disclosure item on your U4 as long as you remain a registered rep.  Depending on exactly why you would be fired, this could also remain a disclosure item even if you go full RIA with no b/d.  This information is available not only to potential new b/ds, who may understand, but to the general public as well - who may be spooked away from you because of it.  I'd be VERY careful about considering that route if I were in your shoes.

You moved once without doing your homework.  Don't make that same mistake again! 

Feb 28, 2008 10:29 am
Jonesness:

Spaceman,


I have been a broker for 13 years.  Got offered a nice office..I liked it  and took the position w/o researching the Jones philosophy. Already had my licenses.. had to do the classes along with seg 2,3. I'm scheduled for 4 class next month.  The issue was with options, as well as many many FSpends and PEND messeges..I blow an hour a day answering.. Everything I do is above board..but when I sell a stock in 2-30 days....I get hammered.
Buy and hold does not work for my advisement, so I need to go elsewhere.  Sorry about blowing steam..the client loss was just the final straw..
 
Seriously, how any FS do you have to answer in a week??
 
I get about one FSPend a month.  But as I think I mentioned once, I am really of the buy and hold, assett allocation philosphy, which happens to fit nicely with Jones.
Feb 28, 2008 10:43 am
EDJ4now:

...so he hasn't been indoctrinated into the idea that the only proper investments are 30 year bonds and A share mutual funds, neither of which are ever appropriate to sell.

 
REALLY?!  Wow, I've heard some goofy things on this forum, but that one takes the cake.  Did you purposefully write that 30 year bonds and A share mutual funds are NEVER appropriate to sell?  I would guess then that C shares or fee based or ETFs are the ONLY way you do biz?
Feb 28, 2008 11:45 am

JONESNESS- I went to Jones fully licensed as well.  Brought some assets with me.  Left after 12-13 months.  Took 90% of my clients with me.  They did not say a word.  I even went through the 3 trips to Tempe for training.  As long as you came licensed you should be fine.