Kinder, Gentler JONES?

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May 13, 2008 12:52 pm

I was just made aware that Edward Jones is allowing a departing Financial Advisor the opportunity to tell the Edward Jones Clients' where they have gone!  Jones will include the contact information of the departing Financial Advisor in the letter they send to the client.  WOW!   


 Be careful, I think they are veiling this as a way to keep the privacy of their clients in tact!
May 13, 2008 10:07 pm

Ohhh, those evil demons!



They should be including the ACAT forms in the letter as well.

May 13, 2008 10:36 pm

You can send a tombstone letter yourself but I don't think that Jones will send them anything that tells them where you have gone.

May 14, 2008 12:38 am

You are correct.  I have seen it for myself!  I left EJ last year and they are on their third broker in my office.  Ironically I get a letter everytime the broker fails and leaves.  My last letter stated the firm that the broker went too, but no contact information.  I have been told that they will publish contact information if you give it to them. 

May 14, 2008 9:59 am

Jones will only send the information if the departing FA gives it to them.  Weddle mentioned this newly adopted practice in a suggbox response recently.  So noggin, if you gave Jones your new contact info, they can send your old clients a letter telling them where you've gone. 

May 14, 2008 10:55 am

When I left, my Regional Leader told me where to go!

May 14, 2008 11:27 am

I told my RL where to go.....

May 14, 2008 11:36 am

Spiff,

 
What was the company line on Jones part to let clients know where the new FA moved to?
May 14, 2008 11:38 am

When I left...I told the WSJ where to go...to find info. on Revenue Sharing at EJ.

May 15, 2008 4:08 pm
uwec1986:

When I left...I told the WSJ where to go...to find info. on Revenue Sharing at EJ.

 
Thanks again, without that we would still have Doug instead of Jim.
May 15, 2008 4:34 pm
Maxstud:
uwec1986:

When I left...I told the WSJ where to go...to find info. on Revenue Sharing at EJ.

 
Thanks again, without that we would still have Doug instead of Jim.
 
Wow, great point!
 
Thanks UWEC!
May 15, 2008 9:47 pm

The pleasure was all mine.

May 16, 2008 10:18 am

Spiff,

 
I'd still like to hear why EJ is letting the clients know where the FA went.  Is there some new FINRA rule that requires it?
May 16, 2008 10:30 am

I'm paraphrasing here, but the "company line" on how they handle an FA leaving is that they do everything they can to protect client confidentiality and privacy.  They won't share information with any outside sources, including the departing FA.  They will send a letter, typically the same day the FA leaves, that tells the clients who will be taking over their accounts, and also the new firm, address, and phone number if the FA has given it to Jones.  They also send something called the NYSE Informed Investor memo.  


It all boils down to a privacy and confidentiality issue first.  Second comes the retention of assets.   As far as it being a FINRA rule, I'm gonna guess no.  FINRA would be more pissed if we printed a list of clients for the departing FA and mailed them to him. 
 
My guess is that someone, somewhere decided to do some CYA and start including the FA's new info.  Possibly thinking someone could sue Jones for some reason.  Who knows. 
 
May 16, 2008 1:39 pm

It doesn't really matter.  But I am certain (like any company) that it is not just out of the goodness of their heart.  I've noticed Jones is starting to get a bit wiser under the new regime, and starting to go with the industry flow a bit more.

May 16, 2008 2:33 pm

Its hard to sell yourself if you look so much different than the others...

May 16, 2008 2:39 pm

God, please lets not have this conversation again..

May 16, 2008 2:56 pm

B24 - ever seen Groundhog Day?  That's what it feels like around here sometimes.  

May 17, 2008 11:31 am
Spaceman Spiff:

I'm paraphrasing here, but the "company line" on how they handle an FA leaving is that they do everything they can to protect client confidentiality and privacy.  They won't share information with any outside sources, including the departing FA.  They will send a letter, typically the same day the FA leaves, that tells the clients who will be taking over their accounts, and also the new firm, address, and phone number if the FA has given it to Jones.  They also send something called the NYSE Informed Investor memo.  


It all boils down to a privacy and confidentiality issue first.  Second comes the retention of assets.   As far as it being a FINRA rule, I'm gonna guess no.  FINRA would be more pissed if we printed a list of clients for the departing FA and mailed them to him. 
 
My guess is that someone, somewhere decided to do some CYA and start including the FA's new info.  Possibly thinking someone could sue Jones for some reason.  Who knows. 
 
The issue was this:  Several smart attorneys started advising departing Jones brokers to leave very detailed information as to how to be contacted in their next life within their resignation letter.  You would also leave a very detailed copy of the same information on the BOA and FA desk in the office.  If clients called and got the new guy and then asked, "Where's the real broker?", then the new guy has to tell them the truth.  In many cases (you may be shocked to know), the new guy would give the client some BS about, "We have no idea where he went or where he's working.  He just cleaned out all of his things in the middle of the night--very wierd.  No two week notice or anything.  Are you really sure that you want such an unpredictable and unreliable person watching your money?  You know, you're safe here with me at Edward Jones.  BTW, I noticed you have some very lazy cash in your account, and we have this excellent 5.75% 30-year Verizon bond available today........" The new broker will leave out the fact that the bond has been laying around in inventory for 6 to 8 weeks and that Verizon is on credit downgrade watch--however it's paying 3% YTB! 
 
Later, when the real broker would catch up with the client, the client may repeat this experience as to what happened when they called the office.  If you can get the client to give a sworn statement that they inquired as to your whereabouts, Jones had the information and then failed to give it out, they are in a world of shit going forward.  No chance for TRO, and if things get really nasty, then the non-solicitation and non-compete clauses might also be voided by a court.  For all of you thinking about leaving, always leave your new contact info. 
May 18, 2008 10:46 pm

EDJ sucks. End of story. There is no way they are going to honor telling the clients where they went. It's a farce. They are a very bad company with very sucky people running it. Sorry spacey. Your company sucks. You were pass program for a reason. You couldn't make it without having a handout. Again---end of story. It feels good to be a pompous prick! Thank you for calling me that. You made some friends here on this site, but not me. Never. I think I only like Ms. Jones and B24 too. You want to be a GP. Hope that goes well for you----suckuhhh. You are WAY out there---no clarity at all.