Edward Jones

Bloobird

I have been offered a position with Edward Jones as an EFA (Experienced Financial Adviser). I'm currently a CAS statues tied adviser with an insurance company.

They are going to pay me at my current level of income (£70k per annum) for the 3-4 months training, then 80% for the next 4 months (plus 40% commission on anything I sell), and sliding down, until I'm receiving 50% for the last month which is month 15. Thereafter I'm on commission only (approx 50/50 split when extra bonus payments and pension conts are included).

They tell me that there is no debt attached with these payments, and I can leave at any point with no clawback etc. I've looked at the contract, and I can't see anything that talks about repayment of training fees etc.

The training period will be to pass the Stockbroking exam and CF8.

I will eventually be given an office, with an assistant, which is all paid for by the company.

I have heard that the attrition rate for New New advisers is very high, but has anyone any experience of this EFA role with Edward Jones?

I would be grateful for any comments.

dunstonh

I have been offered a position with Edward Jones as an EFA (Experienced Financial Adviser). I'm currently a CAS statues tied adviser with an insurance company.

You are not going to find much of a positive view on this I'm afraid.

They are going to pay me at my current level of income (£70k per annum) for the 3-4 months training, then 80% for the next 4 months (plus 40% commission on anything I sell), and sliding down, until I'm receiving 50% for the last month which is month 15. Thereafter I'm on commission only (approx 50/50 split when extra bonus payments and pension conts are included).

What are they doing to do when RDR comes in to effect and commission isnt allowed any more?

I have heard that the attrition rate for New New advisers is very high, but has anyone any experience of this EFA role with Edward Jones?

There have been some posters in the past that looked at EJ and didnt like what they saw. I'm no sure they are still around though. Personally I wouldnt touch them with a bargepole. I have had a few calls from their recruitment over the years and whilst they are very slick the terms are not at all attractive. Plus, you dont get all those things given to you without pressure put on you to sell.

If you are 70k as a tied agent then why not go IFA. I know it means a bit more work but unless you enjoy working in a sales environment rather than a professional advice environment, I can see no appeal to it. Especially when they take 50% of what you earn and incomes are likely to fall in future if you are a commission adviser at the moment.

Bloobird

@ dunstonh vbmenu_register("postmenu_17641551", true); : Thanks for your post' much appreciated.
When RDR comes, I'll guess they'll introduce fees with clients that are a percentage of the amount invested/transferred? Is that conceivable?

In regard to costs: Giving 50% away is obviously high, but you do get an assistant, an office, literature, research on stocks & shares.

The big enticement for me is the guaranteed earnings for 15 months, which gives me time to get my practice up and running.

@ messageboard: Any one out there with personal experience of the EFA proposition? Or maybe know someone who took that proposition. Or anyone at all with any views on the company?

I'm also considering an IFA opportunity with a local company. I really like the principle, and he has promised me training and support to get me (as an inexperienced IFA) up and running. The split here is 70/30, with a monthly cost of £200 for fees, PI etc.

dunstonh

When RDR comes, I'll guess they'll introduce fees with clients that are a percentage of the amount invested/transferred? Is that conceivable?

That will be allowed under RDR but remember that it will typically be much lower than commission and if they are taking 50% of it, that makes your job harder.

Then again, back in my tied agent days, commissions were not that great anyway as you only got small cut which is probably not too dissimilar to what you have been used to.

In regard to costs: Giving 50% away is obviously high, but you do get an assistant, an office, literature, research on stocks & shares.

Literature costs nothing apart from local printing (which is mostly a laser printer churning out from pdfs). IFAs mostly dont get involved in direct investments so that will be one difference. However, fund research is about £2000 per adviser per year if you take the financial analytics full package. Office is about £450 pm. assistent is a heavy cost if full time. Would the assistent be yours fully or shared?

The big enticement for me is the guaranteed earnings for 15 months, which gives me time to get my practice up and running.

This is the bit that would worry me. They are giving you all these things and providing a big outlay to get you started. Yet they are doing nothing to stop you from walking away at the end of it without some from of tie in?

I'm also considering an IFA opportunity with a local company. I really like the principle, and he has promised me training and support to get me (as an inexperienced IFA) up and running. The split here is 70/30, with a monthly cost of £200 for fees, PI etc.

That 70/30 model is quite popular. There are a couple of firms near me that work on thast basis (70/30 or 30/70 depending on who supplies the client).

Bloobird

The assistant would be yours 100%. She would be paid for and trained by the company.

I, like you, also think that the 15 month guarantee sounds just too good to be true, but I can't see any mention of clawback in the contract. Surely they have to stipulate that the money is debtable if there was to be a clawback?

The recruiter has confirmed verbally with me on a number of occasions that there is no clawback, and now the contract seems to back that up. Anyone out there who know's different?

Do you agree that if there was no clawback, then a payment of what would amount to approx £60k over the 15 months, plus the opportunity to earn 40% of whatever you sell, sounds like a good deal? After the 15 month period, you would then start to have more like a 55/45 split, assuming gross commission of £140k

purch

Maybe not relevant, but as usual I'll stick my oar in.

I have a mate who works for Raymond James in Tampa (used to be my next door neighbour).

I remember that he once worked for Edward Jones, so I just rang him at his office to ask his opinion (I lead such a fulfilling life), and he had nothing positive to say (in fact it was all negative)

Not entirely relevant, as this refers to the U.S. operation, but I would expect the business culture would have been exported along with the name.

Day_Trader

With Dunstonh on this one. To add my piece Edward Jones do well by selling a lot of ISAs. Dealt with a few of their 'advisers' in the past and found them quite worrying in terms of compliance issues and technical knowledge. They are the modern day equivalent of door to door salesmen. Avoid if poss. Their turnover of staff is also high IIRC.

Sarahbulloch

Bloobird,

Did you take this position?? I have been offered a role with EJ as a trainee and have reservations of joining, if you have started have you got any feedback on your views of the company?

Thanks
Sarah

socrates

Sarahbulloch wrote: »

Bloobird,

Did you take this position?? I have been offered a role with EJ as a trainee and have reservations of joining, if you have started have you got any feedback on your views of the company?

Thanks
Sarah

Read his very first sentence!