A Crappy Practice from EJ

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Jan 14, 2008 8:41 pm

I know folks here love to bash Jones. I kinda like the Jones philosophy and model, but I find one thing they do to be really Bush League. 

They are the only firm that I have come across that charges outgoing clients a fee and then has the acquiring broker notify his new clients that they have a $90 debt in their IRA's and $50 on regular accounts.

Every other firm I have taken accounts from just charges it to the client on the way out. I always explain to my new clients that their previous firm will have a $40-$100 exit fee. But it sux that Jones then makes me call the new client a week later to ask for a fee check.

I hope other firms will reciprocate Jones' childish policy (only towards accounts headed to EJ) and start making the IR's place that simple, but annoying call.


Jan 14, 2008 8:50 pm

Sounds like someone took a tounge lashing today.


Jones is not the only firm to do this.  I recently had it happen from UBS and Pershing.  I didn't like making that call either.
Jan 14, 2008 9:45 pm

avise,



Every account I've taken from other firms do the same thing (most of the wires, AGE, etc.). In fact, sometimes if I am too quick to make the new investment, or if there is no cash among the securities coming over, I have to ask the client for cash or liquidation of securities to cover the debit from the other firm. It seems to be standard in the industry. I've seen as high as $125 for outgoing transfers. It stinks, but that's the norm.

Jan 14, 2008 11:34 pm

No one likes fees! But we get paid to make that stupid call.  That is part of how we get paid.

Jan 15, 2008 9:27 am

been at jones and elsewhere, they are not the only people who do this.

Jan 15, 2008 10:47 am

Jones is not the only firm to do this--yes the $50 ACAT fee started in 2007.  When I went to LPL I had them pay all the transfer ACAT fees as part of my agreement.  Depending on the size of the account for all new transfers--it might just be the cheapest investment the incomming FA ever makes!

Jan 15, 2008 11:04 am

I've paid all of the transfer fees for the first year.  If I'm correct...if you transfer a 25k or more IRA to LPL, they will not have to pay yearly fees for two years.  I was told this early on, but haven't confirmed that again with LPL.  With all the transfers out, I'm sure the money flowing to JOnes from these fees are huge.

Jan 15, 2008 12:55 pm

I know everyone does it. For some reason, I've only been hit by the debits from Jones. I guess reps at other firms consider cash as an asset class and the losing firm just takes the fee from the cash. By the way, the Jones fee is $90 on IRA's, not $50 as Roadhard mentioned above. 

Jan 15, 2008 5:15 pm
avise:

I know everyone does it. For some reason, I've only been hit by the debits from Jones. I guess reps at other firms consider cash as an asset class and the losing firm just takes the fee from the cash. By the way, the Jones fee is $90 on IRA's, not $50 as Roadhard mentioned above. 


It's normally automated.  So if there is cash, it will automatically be charged against cash pre-transfer.  If there are only securities, the debit comes with it.
Jan 15, 2008 5:26 pm

No, the ACAT fee at Jones is $50.  They will charge the annual fee on an IRA before they move it, so maybe that's where you get the $90.  That fee going from LPL to Jones would be $75.  Not that it ever happens.

Jan 15, 2008 5:39 pm

...damned straight!