$18.33 per account EDJ settlement
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You can thank me personally for all that cash…I got the ball rolling the Revenue Sharing investigation…$200+ million and counting…
Citigroup (parent of Smith Barney) just dropped $1.6 Billion (with a B) to settle on Enron. Smith Barney must be considerably worse than Merrill or EDJ.
[quote=donatello]This is so much fun! I love my $18.33 and all my clients calling and mailing them in! It’s wonderful. I get to frame the letter that came with it and put it up in my office, and tell everyone the story of EDJ…the real story. Call all your clients and those few that didn’t come. It’s going to be a great year…I’m telling you!
Just for the record, I still think I'm on to something with another class action against EDJ for slander. I just found out there are a few still bad-mouthing e-Jonesies 2 years out and counting! Guess they are a little irritated that the 20 out of 50 that left in the region in 2 years are still bringing those accounts in and getting paid extrodinarily well to do it. Folks...give it up. Your LP WILL be affected. Don't be so foolish...it's embarrasing and it's just a matter of time. Before I forget, did any of you see the article about the sheep-shearer gone EDJ FA? It's awesome. The reporter was astounded that a person who was qualified for sheep-shearing and never worked in financial services or had any background was hired by EDJ. Must have something to do with "shearing your clients"! Can't wait until EDJ gets managed accounts. Here's what will happen....UIT for a year or two (4% upfront)...then managed account! Upfront and then ongoing....Can't wait! SUPERSTARRRRRRRR!!![/quote] You go ahead and frame the letter if you need to bash your previous firm to make yourself feel good. I'm sure you're clients won't wonder for a second if your firm does revenue sharing. I love to hear guys like you whining about the Jones guys in your old region talking bad about you. Thin skin. You want to talk about hypocritical? How about all of you guys who come on this board everyday and do nothing but look for ways to bash Jones. Isn't that the pot calling the kettle black? IMHO there's nothing embarassing going on at EDJ. I don't even feel that the revenue sharing fine was embarassing. I'm still confused about getting fined, but not being told to stop. It's like getting pulled over by a cop for speeding, getting the ticket, then getting the OK to continue driving at that speed. I just don't get it. The "story" you must be referring to is the Times article from the UK. You should have asked about the paragraph with very little detail on his background other than his previous job. You missed talking about the part that said he was hired 8 years ago. That he has survived in tough financial market, in a country that historically hasn't been chock full of investors. I don't know Angus Kirk, but I'll bet he's every bit the broker you are. Here's the paragraph/story that the TMNT is talking about:"Sheep shearing is a world away from working as a stockbroker and financial adviser. But that didn’t stop financial services firm Edward Jones taking on Angus Kirk eight years ago. Although Kirk had more experience handling sheep than other people’s finances, the company reckoned he had the right attitude so it hired him."
I see the Incredible Dolt is making connections were no connections exist…EJ’s HQ is full of hipocrits…that’s the issue. Open your eyes, you’re being lied to and taken advantage of.
OK - the word is HYPOCRITE. ED’s HQ is full of HYPOCRITES. If you are going to keep spouting off, at least spell the word correctly.
I love to hear guys like you whining about the Jones guys in your old region talking bad about you. Thin skin. You want to talk about hypocritical? How about all of you guys who come on this board everyday and do nothing but look for ways to bash Jones. Isn’t that the pot calling the kettle black?
-------------------------------------------------------------------------------------------------------------------- Thin skin?--Complaints of slander is not thin skin. Pot calling the kettle black?--Other firms aren't proclaiming "A Shares, A Shares". Jones clients are shocked when I show them that many VAs and managed money platforms are less expensive. (They really are..many undisclosed costs are listed in supplements) No one will address the "upkeep of computers" because you dont see how badly you're being hosed. No one will address the isolation (save Broker 24), which is a paramount cult characteristic. Spiff, why is isolation so important to Jones? You have written off the pattern of character assassination for ex-members as us being thin skinned. (Another cultic behaviour.) The "Bachmann speeches"-Don't most cult leaders publickly say things to proactively divert attention away from the cult's behaviours. (look it up Hulk) Why don't any of you address the cultic behaviours I have pointed out? You all go around these issues. Notice I have not addressed some of the fines/RS stuff. For me the the greater issue is that you are in a cult. You need deprogramming. Go online and do some research. Step back and reason for a moment. Read up on cult characteristics and compare them to the policies put in place where you work. Other ex-jonesees, please post some of the horrible things jones pulled when you left so Spiff can see that these are not isolated events.[quote=GoneIndy02]I love to hear guys like you whining about the Jones guys in your old region talking bad about you. Thin skin. You want to talk about hypocritical? How about all of you guys who come on this board everyday and do nothing but look for ways to bash Jones. Isn’t that the pot calling the kettle black?
-------------------------------------------------------------------------------------------------------------------- Thin skin?--Complaints of slander is not thin skin. Pot calling the kettle black?--Other firms aren't proclaiming "A Shares, A Shares". Jones clients are shocked when I show them that many VAs and managed money platforms are less expensive. (They really are..many undisclosed costs are listed in supplements) - You are correct. Jones is the only place that took a stand and said that A shares are better for the average investor. Most of the other firms basically let the brokers decide and dealt with the arbitration cases as they came. For the non-average investor managed money platforms might be less expensive. It depends on the platform. You will have a difficult time convincing me that there are VA's out there cheaper than A share mutual funds. I don't even feel they should be compared to each other. No one will address the "upkeep of computers" because you dont see how badly you're being hosed. - I don't pretend to understand how all of the charges for my computer, printer, fax, phone, and other basic office equipment breaks down. I know that when I started 5 years ago the charge was the same and I didn't have half of the tools I have now. Everything ran on that stupid satellite system that didn't work when it rained or got cloudy. I dont' have to think about my computer, printer, fax, phone etc. If it breaks for some reason, I call HQ and they fix it or replace it. When it reaches the end of it's useful life, they bring me a new one. They are constantly adding tools to my tool box. I don't have to think, plan, or worry about any of it. Am I getting hosed? Possibly. Could I piece meal a system together myself for a little less money? Probably. Could I spend more time prospecting, selling, or spending time with my family if I didn't have to worry about it? Definitely. No one will address the isolation (save Broker 24), which is a paramount cult characteristic. Spiff, why is isolation so important to Jones? - My guess is that there are two reasons. First, because we are big enough and have enough clout to have our own meetings with places like American Funds. For the vendor, they know they are only talking to EDJ FAs so they can tailor their message specifically to us. Second is a bit of purposeful isolationism. That's one reason I like this board. I like talking or hearing from people from other firms. You have written off the pattern of character assassination for ex-members as us being thin skinned. (Another cultic behaviour.) - The worst I've ever heard anyone say about an FA that has left Jones is that they left because they didn't get the RL job. So, they went indy and started their own firm. I've heard people say that the former FA didn't want to prospect anymore so he went to a bank. I've heard people say that the former FA wanted to work with HNW people so he went to ML. I've NEVER heard anyone say anything about a former FA that could be construed as slander. I'm sure it's happened before. But I've not heard it. The "Bachmann speeches"-Don't most cult leaders publickly say things to proactively divert attention away from the cult's behaviours. (look it up Hulk) - What do you want the man to say? "You know, you all would be better off if you went independant, or to some other brokerage firm." Of course he's going to say that he believes that EDJ is the best firm out there. I wouldn't expect anything different from the MANAGING PARTNER of my firm. I hope they continue to say it. He repeatedly said that Jones is only one of the right ways. Why don't any of you address the cultic behaviours I have pointed out? You all go around these issues. Notice I have not addressed some of the fines/RS stuff. For me the the greater issue is that you are in a cult. You need deprogramming. Go online and do some research. Step back and reason for a moment. Read up on cult characteristics and compare them to the policies put in place where you work. Other ex-jonesees, please post some of the horrible things jones pulled when you left so Spiff can see that these are not isolated events. [/quote] Jones isn't any more of a cult than LPL is. I'll bet that when all of you get together at your annual meetings in San Diego that a lot of the same stuff goes on. You talk about how glad you are that you are indy now. Wish you would have done it sooner. You're soooo much better of an FA now that your indy than you were at wherever. I can't believe those schmucks stay there. What are they thinking. I would expect you to say that your way is the best way. I would expect your leader to say that he believes you are the best thing out there and everyone else should join you. If they aren't saying things like that, they need to be replaced with someone who is.[quote=uwec1986][quote=Spaceman Spiff]
The clients don't know where the money goes. They just know that there is a revenue sharing agreement. So, I get your point, but if the two companies got fined for revenue sharing then they got fined for the same practice materially.
The money only goes back to FAs as P&L credits. Then it only matters if you are profitable and what the bonus bracket is. I would guess that the majority of the RS money stays with the firm. Well, at least with the GPs. [/quote] The difference is the EJ took out an ad in the WSJ saying how bad the other guys are and then...BAM...$75 mil. fine. EJ is so hipocrital...and still is. Don't bother with the whole P&L credits thing...90% of all the RS dollars stay in the GP's pockets. GP's want to annuitize their revenue but think it's a sin if you do it (ie...lower payout on C-shares and no fee-based accounts) Just another hypocrisy. Spiff, I'm glad you're happy there and I think you're one of few reasonable EJ guys on the site but if you look outside a bit more...you'll leave and I'll be happy to help you do it.[/quote] Not sure if you were around yet Spiff, but there was a day IR's used only Federated and Hartford because it paid 10 times the revenue sharing. It made a significant difference to their bottom line, and their bonus checks. That was corrected later with the .0000045 calculation.By the way that’s 10 times American Funds, which most of “us” were using.
These were some of the same people that were selling muni bond funds and ripping off 6-7% incomes while the rest of us were selling bonds at 2-3% gross. They were the "best" in the region at helping their clients!I was around then. I wasn’t selling at that point, but I was with Jones. I remember those conversations. But, I never had to worry about those decisions. I do remember that the majority of the money was still going to American Funds and Putnam. The FA who used Federated or Hartford exclusively was rare.
I was recently at a regional LPL meeting discussing LPL’s Advisory Consulting Service…I felt out of place not wearing a suit. Didn’t hear any discussions on Jones, just about the platform and the new consultants in the field to help our practices grow. No one stood up to tell the advisors how to sell BAC on the phone…no role playing…no "I won a trip to Guatamala (sp?)…Just a presentation on how LPL is always looking to improve there service to ME…and the new rollouts on the platform…No cult talks…no "hey…if you know of a person selling cars or shoes…show them the opportunity of selling stocks to people…Sorry Spiff…none of that. The real difference is…You work for Jones, LPL works for ME…think about it…
Gone, I don’t deny some of the issues that are raised about Jones’s culture. But I will point out a few things:
* The majority of FA's don't get wrapped up in the pomp & circumstance at Jones. Most are adult enough to take the good things and leave the rest. * Much of the cultish environment you speak of tends to be regionally based (at least it must be, since I don't witness much if it). * Some of the "we're better than the rest" attitude actually forms out of pride. I witnessed this at another company I worked at (totally different industry). We were sort of the accepted industry leader (no, I am not claiming Jones to be), so anytime someone left to go to a competitor, everyone would be bewildered as to why they would possibly want to leave. And you tend to only cite the GOOD things about your firm, not the BAD things that annoy you. Human nature. * Jones does an admirable job of keeping themselves out of the limelight as a private company. Ever notice how whenever something happens at one of the wires (leadership change, structural change, payout change, writoffs, settlements, etc.) the media is all over it, interviewing "one advisor we spoke with who produces 500K said....". This is one of the reasons that they "isolate" themselves. They try to steer clear of all that attention. Though I would like to have more industry involvement, I actually commend them (from a corporate governance viewpoint). * Jones has never been shy about saying that the firm, the culture, and the investment philosophy is not for everyone. * The computer charge: $1250/mo. This includes: T1/DSL cost (depending on location) Satellite 2 PC's Color Laser Printer Copier/Fax/Scanner 2 Telephone System Server Software, and annual upgrade subscriptions (in a corporate world, you can't pirate software and use it for years without upgrades) Cost Basis software (Networth Services, Inc.) Morningstar Hypos Realtime Quote System Contact Management System Scanning/document management system Video System, Television, DVD/VCR player E-mail Hardware and software maintenance contracts Oh, and you never have to actually BUY the computer,printer,fax,phone,TV,DVD, etc. They give it to you. When it breaks or is too old, they replace it. So that's some of it. And keep in mind, it's a P&L CHARGE, not a charge to your commissions. So if you added 100% of that charge back into your profit, you might see $250-$500 in additional bonus per month. And if you are not yet profitable, it's all absolutely free to you. So the true cost to you is never $1250. I can't imagine you can get all of that independantly for much less than $500. Gone, I am not trying to explain away everything that Jones does. But I think sometimes the embelishments tip a bit too far in the other direction. It just needs to be kept in perspective.I stand corrected…I was in a hurry…cut a brother some slack…it is a message board after all.
Gosh ! I get all the above for a $500 per month. Oh! I don’t have to fund 125% extra for the GP fund. As a former GP/RL I can see through some of the BS especially on the newbie pages. I can remember giving advice to use Hartford and Federated for the same reasons mentioned. I left a few years ago to cleanse myself of a kool-aide hangover. While I remember a lot of good things about Eddie, It is so refreshing to make decisions for the client first and the firm second
It took you until the time you were a RL/GP to realize you didn't like the firm? Boy, you really were drinking the Kool-aide!Gosh ! I get all the above for a $500 per month. Oh! I don’t have to fund 125% extra for the GP fund. As a former GP/RL I can see through some of the BS especially on the newbie pages. I can remember giving advice to use Hartford and Federated for the same reasons mentioned. I left a few years ago to cleanse myself of a kool-aide hangover. While I remember a lot of good things about Eddie, It is so refreshing to make decisions for the client first and the firm second
As far as equipment goes…lets see…I spent probably 4-5k to set my office up…two desktops, networked with my printer (copier scanner…blah blah blah)…contact management software with an advisor overlay…telephone system…with caller ID…I pay for S&P…realtime quotes for free…I looked at my commission statement and it shows my monthly software expense from LPL…125 per month…Oh…I just had my Corp purchase a new laptop for me and for my daughter…wasn’t the owner nice…oh thats me. You can spin all this anyway you want to…but the bottom line is in today’s enviroment…with technology whether its high speed internet, internet based trading platforms, equipment…etc…the advantages of being captive vs indy is nill. We have the inventory, the platform, the research. Some will say the name recognition is a leg in the door for high networth…maybe thats true…maybe not…I’m okay with 200-600k rollovers from the local factories and a net net payout of 84%…IF you think you’re getting a good deal making 35% with a wacked out P/L…and they provide you with 600$ computers and will cover a service call…good for you. But hindsight tells me…you’re getting screwed…some like getting screwed…others go indy.
I know it is a scary world out here. The propaganda spewed by your company to keep you captive...I remember all the talk in the region when someone would leave..."they won't get 1 client to move"..."the expenses going Indy will eat you alive"...I'm a testatment to the contrary...The clients do and will gladly move to you...and the expenses are what you want to spend. Technology is at your fingertips...whatever you want to do..you can do..set your office up the way you want...set your practice up the way you want..PROSPECT ANYWHERE..hell you can even transfer clients from other LPL reps and not hear shit from anyone!!
It took you until the time you were a RL/GP to realize you didn't like the firm? Boy, you really were drinking the Kool-aide![/quote] I am curious...why would a seg 5 broker who is probably well north of $500K/year plus profitability bonuses plus the two trips (probably meaningless at that point), Regional leader, GP (the pinnacle of success at EDJ and the best partnership return) leave the comforts of EDJ? You didn't say whether you went indy or not, so I can't make any assumptions about payout.[quote=OICUR12]Gosh ! I get all the above for a $500 per month. Oh! I don’t have to fund 125% extra for the GP fund. As a former GP/RL I can see through some of the BS especially on the newbie pages. I can remember giving advice to use Hartford and Federated for the same reasons mentioned. I left a few years ago to cleanse myself of a kool-aide hangover. While I remember a lot of good things about Eddie, It is so refreshing to make decisions for the client first and the firm second
[quote=bspears]
I know it is a scary world out here. The propaganda spewed by your company to keep you captive...I remember all the talk in the region when someone would leave..."they won't get 1 client to move"..."the expenses going Indy will eat you alive"...I'm a testatment to the contrary...The clients do and will gladly move to you...and the expenses are what you want to spend. Technology is at your fingertips...whatever you want to do..you can do..set your office up the way you want...set your practice up the way you want..PROSPECT ANYWHERE..hell you can even transfer clients from other LPL reps and not hear shit from anyone!!
[/quote] Like B24 said, we are adults (for the most part) and we can see through the smoke screen when they say stuff like that. You have to be happy where you are. Otherwise, leave. I like the comfort and ease of running my biz through the EDJ model. Funny how it's always EDJ that is the evil monster. What about all those poor schmucks that stay at those horrible firms like Merrill Lynch, Morgan Stanley, UBS, or at the banks? There's a bunch of propaganda over there too. They have to make decisions based on shareholders first, then the clients, then the FAs. But NOBODY ever talks about that here.I’m not sure EDJ’s is the only evil monster…but it is my only comparison. I have a close friend at Morgan Stanley who, along with a partner, oversees 300mil. He envies me going Indy, I envy his 300mil. I would never and have never suggested he leave Morgan…now that I think about it, I’ve never suggested anyone go to LPL or Indy…its the adults choice. But, when someone comes on here to defend a 35% payout on a list of things that can be purchased and maintained for the fraction of the cost charged…P/L or otherwise, then I have to give my .02. I was at Jones, I’m at LPL. I have the experience to know what I’m talking about…IF I remember correctly, you’ve never been at LPL nor has Broke24…correct me if I’m wrong. And, as I’ve said in the past, I don’t want anymore indy’s in my town.
It took you until the time you were a RL/GP to realize you didn't like the firm? Boy, you really were drinking the Kool-aide![/quote] I am curious...why would a seg 5 broker who is probably well north of $500K/year plus profitability bonuses plus the two trips (probably meaningless at that point), Regional leader, GP (the pinnacle of success at EDJ and the best partnership return) leave the comforts of EDJ? You didn't say whether you went indy or not, so I can't make any assumptions about payout. [/quote] Your comments are true, however the sad commentary about EJ is that when you reach the pinnacle of success and become a RL, you get a call every quarter from someone in STL (that may or may not have been as successful as you) and he is filling out a "report card" on your performance; which often times is only as good as the number of people that failed or left to go independent in the last month. This has driven more than one GP/RL to greener pastures (before or after being driven to drinking).[quote=Broker24][quote=OICUR12]Gosh ! I get all the above for a $500 per month. Oh! I don’t have to fund 125% extra for the GP fund. As a former GP/RL I can see through some of the BS especially on the newbie pages. I can remember giving advice to use Hartford and Federated for the same reasons mentioned. I left a few years ago to cleanse myself of a kool-aide hangover. While I remember a lot of good things about Eddie, It is so refreshing to make decisions for the client first and the firm second