Jones is hemorrhaging...suing IRs

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May 10, 2005 10:21 am

I left Jones to have access to fee-based platforms. I spoke with a number of Jones IRs before leaving. Only one IR (of seven) was sued for training costs ($75,000, prorated quarterly, after one year of service). I recently received a letter from an EJ law firm seeking ~$50k in training cost reimbursement. Have any other ex-Jones IRs had this experience? What was the outcome? I'm starting to rethink my decision....

May 10, 2005 10:23 am

Is this to "stop the bleeding", or a typical EJ response when an IR leaves?

May 10, 2005 11:10 am

I left over a year ago, and received the same letter.  My new firm paid the charge.

May 10, 2005 4:16 pm

I left last year as well.  Got letter.  New firm paid.

May 10, 2005 4:54 pm

Maybe this is how they plan to make up for the lost revenues from the revenue sharing shakedown!

May 10, 2005 9:38 pm

New Jones slogan..."Taking cents from our investors"...Whoops, I meant "Making sense of investing". Now the tag can be "Taking dollars from our ex-irs".

May 10, 2005 10:28 pm

There was a discussion of this on the "Legal" forum, with an excellent post by rrbdlawyer (our resident attorney) about the enforcement of these clauses.  Basically, all firms put them in the hiring contract and can enforce them.  But whether they actually will enforce them tends to be somewhat sporadic and random, as you have just discovered.  The smart way to do it is to negotiate a buyout by your new firm before you actually move (see above posts).  Since it appears that you did not do that, the only thing you can do now is: (1) hope they don't actually pursue this further, or, if they do, (2) hire a good lawyer. 


And just so you don't feel like all hope is lost, I have one friend that left a big wire house, received a letter, ignored it, and now two years later still has not heard anything.

May 10, 2005 10:32 pm
Starka:

Maybe this is how they plan to make up for the lost revenues from the revenue sharing shakedown!





Starka,



Jone's net earnings in April were $38.6 million on gross revenue of $298.7 million, year to date revenue through April is $1 Billion. Jones best trimester ever.



And our most important critic, our clients, rated us the highest in customer satisfaction of the major firms. Remember the survey was done in January and February, just a few months after the settlement was announced in December.



I think Jones is hanging in there pretty, well.



BPD

May 10, 2005 11:20 pm

Received the same letter.  Fired off my own letter telling them to refer all future correspondence to my attorney.  Also reminded them that I resided in a "right to work" state.  Pretty much told them to pack sand.  Never heard another word.

May 11, 2005 7:48 am

Get yourself a good employment attorney, ignore the letter and go to work socking as much money into fee based as you can. A year from now you will be smiling at the decision you made as I am today.

May 14, 2005 5:52 pm

BPD-  was trading volume up or down for the quarter at Jones?  Revenue was up 1% year over year, from the numbers I just saw.  I also saw that volume was down but wante to give you a chance.   You charge commissions and not a fee?  Hmmm..... Maybe you can see some merit as to why Jones stays away from fee based business.

May 16, 2005 10:43 pm

Truth, take note:



1. The first 4 months of this year were Edward Jones' strongest 4 month period ever in terms of gross revenue and net earnings. EVER!



2. They came in first in the JD Power Survey for customer satisfaction, remember the survey was done in January and February of this year. (Wouldn't you agree the customer is our most important critic?)



3. They were ranked the number one company to work for in Hawaii.



4. Edward Jones LP has paid annualized return of 22% so far this year.



5. They are in the 40% bonus bracket. (The highest ever was 50% in the late 90's and early 2000.)



6. Last contest period over 50% of our reps went on a trip. Yes I said 50%, not the 3% - 5% that you see at most firms. Greek Isle Cruise, Beaune France, Botswana Africa, Cambodia, Amalfi Coast, Italy. I could go on but I think you are getting the idea. Oh did I say over 50%, yes I did.



I can see why so many reps who have left Edward Jones are so mad. If I left Edward Jones, I would be mad too. Wouldn't you?    



BPD



May 17, 2005 7:53 am

I've been following these posts for some time now, and at long last the one thing I can be sure of is that BigPayDay is full of more shlt than a Christmas turkey.


Your moniker should be ChumpChange!


Have a nice life, Chump!

May 17, 2005 8:34 am

"6. Last contest period over 50% of our reps went on a trip..."



Says it all. Professionals don't have "contests".....

May 17, 2005 10:36 pm
Philo Kvetch:

I've been following these posts for some time now, and at long last the one thing I can be sure of is that BigPayDay is full of more shlt than a Christmas turkey.



Your moniker should be ChumpChange!



Have a nice life, Chump!





Philo,



I know it sounds to good to be true. But it is.



BPD



P.S. My wife stuffs our turkey with stuffing.

May 18, 2005 7:37 am

candy bar,


you and your firm are legends in your collective mind (with apologies to Dirty Harry)

May 18, 2005 10:00 pm
stanwbrown:

"6. Last contest period over 50% of our reps went on a trip..."



Says it all. Professionals don't have "contests".....




Sure, and the Pope doesn't J*rk off.



May 18, 2005 10:46 pm

stanwbrown wrote:


Interesting ...


"New Hampshire securities regulators are suing Morgan Stanley, charging that in 2002 the firm encouraged its brokers to sell proprietary mutual funds by using sales contests, a violation of NASD rules."


http://registeredrep.com/news/Morgan-Stanley-sued/

May 18, 2005 10:51 pm

envy
Pronunciation: 'en-vE
Function: noun

<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />


Painful or resentful awareness of an advantage enjoyed by another joined with a desire to possess the same advantage.


 


jealous
Pronunciation: 'je-l&s
Function: adjective


Hostile toward a rival or one believed to enjoy an advantage.

May 19, 2005 12:24 am
jonesnewbie:

stanwbrown wrote:


Interesting ...


"New Hampshire securities regulators are suing Morgan Stanley, charging that in 2002 the firm encouraged its brokers to sell proprietary mutual funds by using sales contests, a violation of NASD rules."


http://registeredrep.com/news/Morgan-Stanley-sued/



Read the details, assuming you can. It was a regional sales manager who took it upon himself, against firm rules, to run a contest. MS was fined, he was fired.


OTOH, Jones still does firm wide "trip contests", and has offices in strip malls. About as professional as vacuum cleaner salesmen...