Thinking of Leaving Jones

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Jun 16, 2010 12:27 am

I am a new financial advisor who has been selling 25 months now.  I am considering an offer for an internal wholesaler position. I am not looking for any comments for why I am an idiot or genius for considering this I am just looking to hear someone's ACTUAL experience with training reimbursement expenses.  I have scanned many of the forums but most of the posts do not discuss what actually ended up happening. For example, " they hired a lawyer, settled for 10%, of amount owed, had to pay the lawyer $5,000".  I do know that an internal position is still considered a competitor, and edward jones will come at you for the entire amount owed, even though I will not be a financial advisor.  I know they would come at me for the whole amount, I am just curious as to how the whole thing would play out should i choose to leave. I have had some success w-2 earnings for 2009 was 65,000 so I will not be able to plead "that i was unable to feed my family."

Thank you so much for those who can offer their help.

Jun 16, 2010 4:21 am

If you are going to be an internal wholesaler, they won't come after you for training expenses.

When you are going to be competing for clients is when they come after you.  Unless things have changed.

Have a heart to heart with your DL and tell him or her that you just aren't cut out for this side of the business.

Jun 16, 2010 9:35 am

Magician is right, they won't come after you unless you are going to be advising clients.  They may send you a letter because (I assume) you need to keep your security licenses to be a wholesaler, but it will just be a polite  "reminder" letter about your contract.  You may need to respond to them and let them know that you are not advising clients, etc.  All they will see is that your registration has transferred to (insert investment firm name here).

Jun 16, 2010 7:51 pm

magician and B24 thank you for your responses.

Do you know this as a fact? i.e. do you know someone who has done this?  A friend of mine thought this was the case and got a bill for $75,000 in the mail. He hasn't sent in anything yet as to the fact that he is not advising clients and is in a completely different role.  The contract states if you go on to be a registered rep (which i most certainly would still be) they can come after you for training expenses in your first 3 years after your can sell. 

Jun 17, 2010 4:53 am

jones - I know five people who have done it.

That was four or five years ago, but I know them.

Trust me, Jones doesn't care about that amount of money.  If you are not going to produce for them and are unmotivated to do so, they will be more than happy to watch you go become an internal wholesaler.

Jul 2, 2010 8:29 pm

For what it is worth...

Magician and B24 hit the nail on the head.

I personally have seen it happen three times, where FA's left to go to other companies to sell.  They got a letter from Jones Attorneys in St. Louis (Goldstein), then they got another and another...

Bottomline...Nothing happened.  And all of these guys left  before the three year mark and took assets. 

I completely agree with with your Regional Leader/ DL...if you have that kind of relationship and let them know your thoughts nd seek input from them. 

Jul 3, 2010 12:58 am

A guy I know left Jones after two years and received a letter from an attorney. The attorney said they "bought" the rights to settle the case. Whatever they negotiate they keep and Jones is practically out of it unless you are a big producer. If you are unhappy just go. Ignore all communications until you are actually served with papers, then call and negotiate. Typical negotiation is .10 on the $.

(This is all hearsay and I am just an anonymous member not a lawyer duh)

Jul 4, 2010 9:04 am

The magic number is 24 months.  BUT...if you do it right and go to your RL ahead of time, they will not go after you.

Feb 26, 2011 9:21 pm


I am looking to become an Internal Wholesaler at a Mutual Fund Company where I would need my licenses.  I've been with Jones since 11/2009.   This side of the business is not for me.  At the mutual fund company, I wouldn't be engaged in solicitation of clients, nor would I be a Financial Advisor.

Will Jones come after me for training costs?  

I figure that it's not engaged in selling securities or insurance, so I would assume no.  Please let me know either way as soon as you can.