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Edward D. Jones & Co. LP has agreed to pay a $100,000 fine and roughly $73,000 in restitution to settle claims by Connecticut’s banking regulator that it overcharged retail brokerage clients with unreasonable commissions, marking a key piece in a wider multistate crackdown on excessive trading fees.

The consent order, finalized Wednesday, follows an investigation led by the Connecticut Department of Banking, which found that Edward Jones’ commission practices violated fairness standards under state and federal securities law.

According to the order, the wealth management firm charged more than $11.2 million in excessive commissions nationwide between May 2020 and April 2025, covering approximately 781,240 equity transactions.

“Unreasonable” Fees on Small Trades

Investigators determined that 5,278 equity trades executed in Connecticut carried fees exceeding 5% of the principal amount, totaling $72,702.37 in inflated costs to customers.

“Numerous transactions included a commission well above the 5% guideline,” the consent order stated, citing FINRA Rule 2121.01, which uses the 5% figure as a benchmark for evaluating fair commissions.

The rule allows for flexibility based on context, but regulators said Edward Jones’ pattern of applying a $50 minimum commission disproportionately burdened small-dollar investors, making the fees “unreasonable.”

Failure of Oversight

Despite having systems meant to detect and adjust improper charges, Edward Jones failed to adequately supervise smaller equity trades, allowing the excessive commissions to persist unchecked, according to the order.

“As a result, Edward Jones failed to adequately supervise small principal equity transactions where the minimum equity commission was in excess of 5%,” regulators wrote.

A Wider Industry Reckoning

This settlement forms part of a broader multistate resolution announced in June by the North American Securities Administrators Association (NASAA). The agreement required Edward Jones, TD Ameritrade, LPL Financial, RBC, and Stifel to collectively pay up to $9.3 million for violations of state securities laws related to excessive commissions, along with restitution and 6% interest to affected customers.

Terms of the Connecticut Settlement

Under the Connecticut consent order, Edward Jones must:

• Pay the $100,000 fine within 15 days.

• Provide restitution within 180 days — through account credits for current customers or checks for former ones.

• Certify within 60 days that it has implemented new systems to prevent future overcharging.

An Edward Jones spokesperson said in a statement that the firm “cooperated fully with the NASAA task force investigation and is pleased to have resolved the matter.”

“We are committed to integrity and transparency and continually work to strengthen our processes, foster a culture of compliance, and safeguard the trust of our clients,” the spokesperson added.

A representative for the Connecticut Department of Banking did not immediately respond to a request for comment.

With regulators increasingly tightening their watch on commission fairness and retail investor protection, Edward Jones’ fine underscores a clear message: even long-established wealth firms are not immune from scrutiny when customer costs cross the line of reasonableness.