- 11,305
https://www.bizjournals.com/denver/prnewswire/press_releases/Colorado/2018/03/31/LA53878
Well, this will certainly test the DOL ruling before their decision in early May.
The Complaint alleges that Edward Jones executed a reverse churning scheme to take advantage of trusting, long-standing clients and unlawfully shift their commission-based accounts to a fee-based program – Edward Jones Advisory Solutions ("Advisory Solutions") or Edward Jones Guided Solutions ("Guided Solutions") (collectively, "Advisory Programs").
In orchestrating this scheme to churn revenue from essentially dead assets, Edward Jones made misleading statements and material omissions to their clients about the amount of fees they would pay after their assets were moved into one of the Advisory Programs and about Edward Jones' preference for investing in proprietary funds only available through Advisory Solutions.
In addition, Defendants breached their fiduciary duties because clients who engaged in little to no trading activity paid more in fee-based accounts than they did in commission-based accounts and clients who were invested in a proprietary fund were entitled to know about Defendants' competing interests that caused them to make self-interested investments on their clients' behalf.
Well, this will certainly test the DOL ruling before their decision in early May.