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Nov 7, 2006 2:07 pm

Edward Jones is having their brokers sit for the Series 66.  Could this be a prelude to a fee based platform rollout?

Nov 7, 2006 2:15 pm
Starka:

Edward Jones is having their brokers sit for the Series 66.  Could this be a prelude to a fee based platform rollout?



depends upon how many of them can pass!

Nov 7, 2006 2:33 pm

Now that is interesting.  Darn.  this is usually a slam dunk when sitting down with EDJ clients who get CHURNED cause EDJ can't do advisory business.


The 66 is a breeze.


Nov 7, 2006 6:23 pm

First they have to get the license. Then the partners have to figure out which funds should participate (read between those lines). The fee structure will be 25% above the street (same as their SMA program). And their reps will get 40% on the payout. Weddle probably has a calculator that works, and has figured out that the partners can make more money embracing rather than fighting the trend.


One rumor I heard was that they might use ETF's. No revenue sharing so I would doubt that. But who knows maybe they are realizing they have to be more current with their offerings. But first they have to get off that dreadful satellite based system. They do have (or will have) new capital with the recent offering, so it is plausible that change may be in the wind. That's code for as long as the partners don't have to pay for it.


Nov 9, 2006 1:59 am
joedabrkr:
Starka:

Edward Jones is having their brokers sit for the Series 66.  Could this be a prelude to a fee based platform rollout?



depends upon how many of them can pass!



You mean the same people who already passed the 7?

Nov 9, 2006 5:48 am

footsoldier -

Highly doubtful EJ would embrace ETFs. Their "philosophy" is that
actively managed funds are much more preferable to (mostly) static
indexes. And then of course there is no revenue sharing with ETFs. The
Jones legal/compliance people are so unfamiliar with ETFs that EJ had
to institute an ETF recission policy earlier this year. Essentially EJ
did not send out prospectuses with ETF purchase confirms. Thus
regulators

forced EJ to offer to reimburse ETF buyers the full purchase price plus
interest. Unbelievable in this day and age. St Louis is a bit removed
from Wall St but you'd think at least some of the current investment
reality would find its' way to Jones by osmosis...

Nov 9, 2006 9:33 am
Maxstud:
joedabrkr:
Starka:

Edward Jones is having their brokers sit for the Series 66.

Could this be a prelude to a fee based platform rollout?

depends

upon how many of them can pass!

You mean the same people

who already passed the 7?





Yes, Max, people who have passed the Series 7.



What's your point?

Nov 9, 2006 9:46 am
Starka:
Maxstud:
joedabrkr:
Starka:

Edward Jones is having their brokers sit for the Series 66. 

Could this be a prelude to a fee based platform rollout?

depends

upon how many of them can pass!

You mean the same people

who already passed the 7?





Yes, Max, people who have passed the Series 7.



What's your point?



66 is easier then the 7.  Well from what I've studied so far at least, of course the 7 wasn't very hard either.

Nov 9, 2006 11:05 am
Maxstud:
Starka:
Maxstud:
joedabrkr:
Starka:

Edward Jones is having their brokers sit for the Series 66. 
Could this be a prelude to a fee based platform rollout?

depends
upon how many of them can pass!

You mean the same people
who already passed the 7?



Yes, Max, people who have passed the Series 7.

What's your point?



66 is easier then the 7.  Well from what I've studied so far at least, of course the 7 wasn't very hard either.



Again, what's your point?

Nov 9, 2006 11:17 am
midtown:

footsoldier -

Highly doubtful EJ would embrace ETFs. Their "philosophy" is that
actively managed funds are much more preferable to (mostly) static
indexes. And then of course there is no revenue sharing with ETFs.



There's the key issue!

Nov 9, 2006 2:23 pm
Starka:
Maxstud:
Starka:
Maxstud:
joedabrkr:
Starka:

Edward Jones is having their brokers sit for the Series 66. 
Could this be a prelude to a fee based platform rollout?

depends
upon how many of them can pass!

You mean the same people
who already passed the 7?



Yes, Max, people who have passed the Series 7.

What's your point?



66 is easier then the 7.  Well from what I've studied so far at least, of course the 7 wasn't very hard either.



Again, what's your point?



That Joe's joke is stupid.

Nov 9, 2006 2:56 pm

Just so I understand Max, you're saying that if a significant number of Jones

reps fail attain a Series 6, that would have no impact on the firm's ability to

deliver a fee based platform to it's brokers? No offense, but I think that's a

naive stance. And frankly, I fail to see the humor in that.

Nov 9, 2006 4:16 pm

I'm curious to see if this causes more or less interest in Jones.  For many years they've systematically steered IR's away from fee-based platforms, and other b/d's that offer them at the same time.  Now if they're telling IR's that fee-based business is a viable option will there be a exodus of advisors who want a platform that has the kinks worked out and is perhaps more robust?


Time will tell...

Nov 9, 2006 7:44 pm
FreedomLvr:

I'm curious to see if this causes more or less interest in Jones.  For many years they've systematically steered IR's away from fee-based platforms, and other b/d's that offer them at the same time.  Now if they're telling IR's that fee-based business is a viable option will there be a exodus of advisors who want a platform that has the kinks worked out and is perhaps more robust?


Time will tell...



The only thing I was trying to comment on was Joe's post, that I read as a joke, saying that EDJ brokers would as a whole be unable to pass the 66.  I took it as a joke because of this at the end of his sentence.  The official reason that we all are taking the series 66 is not because EDJ is absolutely going to do fee based biz, although in my urban region all the IR's are in favor of adding that as an option for our clients.  Weddle has said that they should have a announcement by December whether they believe it's a option EDJ should offer.

Nov 9, 2006 7:46 pm

Oops didn't mean to quote Freedom on that one.  Sorry.

Nov 9, 2006 7:48 pm

How old are you gals? Grow-up.

Nov 10, 2006 9:39 am

I understand that brokers at Jones are being told that the reason for getting

the Series 6 is for ther verbiage ob their business cards. In other words, so

they can call themselves "Financial Advisors" or some such. If this is true,

isn't it interesting how far around the bend the NASD/Spitzer/SEC cabal is

pushing firms?

Nov 10, 2006 9:56 am

EDJ bought a software bundle to improve our financial planning capabilities and we are being told to be able to access and use the complete package we have to be series 66 licensed.  If your not you can only access a portion of the software.

Nov 10, 2006 10:04 am
Maxstud:
Starka:
Maxstud:
Starka:
Maxstud:
joedabrkr:
Starka:

Edward Jones is having their brokers sit for the Series 66. 
Could this be a prelude to a fee based platform rollout?

depends
upon how many of them can pass!

You mean the same people
who already passed the 7?



Yes, Max, people who have passed the Series 7.

What's your point?



66 is easier then the 7.  Well from what I've studied so far at least, of course the 7 wasn't very hard either.



Again, what's your point?



That Joe's joke is stupid.



Beauty is in the eye of the beholder.

Get back to us if you pass the test....

Nov 10, 2006 10:29 am
Maxstud:

EDJ bought a software bundle to improve our financial planning capabilities and we are being told to be able to access and use the complete package we have to be series 66 licensed.  If your not you can only access a portion of the software.


That seems to be a bit of an overkill, don't you think?  You don't need a 66 to use the firm's planning software.  Jones could just as easily formed it's own RIA (if in fact it hasn't already), then made the brokers IARs.  QED, an no one needs to lose time in production for an unnecessary test.