Edward Jones, a broker-dealer located in Saint Louis, Missouri, was censured and fined $725,000.00 by Financial Industry Regulatory Authority (FINRA) for the failure to supervise consolidated reports transmitted to customers regarding their accounts inside and outside of Edward Jones. Letter of Acceptance, Waiver and Consent, No. 2016049783001 (July 13, 2017).
According to the AWC, an estimated fifty-two million unsupervised documents had been produced by Edward Jones that referenced customers’ assets held with Edward Jones among other institutions. Particularly, the documents were meant to supplement a general customer account statement, but were not subject of any supervisory policies and systems to thwart risks of potential false, confusing, inaccurate or even fraudulent statements in reference to the customers’ account details.
Apparently, the firm lacked any process for review and guidance when it came to its staff using the documents with customers. The firm reportedly lacked processes to educate its registered representatives on accurately portraying the investments customers held away from the firm. Further, the AWC stated that the firm did not set forth instructions on verification of customer assets. The firm’s conduct was consequently found by FINRA to be violative of FINRA Rules 2010 as well as NASD Rule 3010(a).
Edward Jones, a broker-dealer located in Saint Louis, Missouri, was censured and fined $725,000.00 by Financial Industry Regulatory Authority (FINRA) for the failure to supervise consolidated reports transmitted to customers regarding their accounts inside and outside of Edward Jones. Letter of Acceptance, Waiver and Consent, No. 2016049783001 (July 13, 2017).
According to the AWC, an estimated fifty-two million unsupervised documents had been produced by Edward Jones that referenced customers’ assets held with Edward Jones among other institutions. Particularly, the documents were meant to supplement a general customer account statement, but were not subject of any supervisory policies and systems to thwart risks of potential false, confusing, inaccurate or even fraudulent statements in reference to the customers’ account details.
Apparently, the firm lacked any process for review and guidance when it came to its staff using the documents with customers. The firm reportedly lacked processes to educate its registered representatives on accurately portraying the investments customers held away from the firm. Further, the AWC stated that the firm did not set forth instructions on verification of customer assets. The firm’s conduct was consequently found by FINRA to be violative of FINRA Rules 2010 as well as NASD Rule 3010(a).
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