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:
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Pay the $100,000 fine within 15 days.
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Provide restitution within 180 days — through account credits for current customers or checks for former ones.
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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.
