What's happening with Edward Jones?

newrecruit

I got a call from Edward Jones head office telling me that they are not recruiting until the next year. I had forgotten that I applied for their FA position. It was a good few months ago.
But I also hear that they are being taken over and many of their FAs are being sacked...is it true?
I understand that many of FAs are under qualified. The Edward Jones FAs are really sales reps going door to door, but they call them selves Financial Adviser and Stock Broker (fancy stock brokers going door to door selling investments!)
I am not sure FSA allows FAs to go door to door offering advice.
Is it worth considering them still? or they are in for demise?
The fact that they pay for all the training as well as basic salary during the training did sound attractive at the time, as well as the potential of earning 100k + doing part-time hours (or was this some BS to get newbies in?)...the guy local to me says he rakes in 100k+ while but he plays golf most days....

dunstonh

They have been bought by Towry Law. TL are nothing like Edward Jones. The models couldnt be different. TL are interested in the client bank and trail/renewals and they can move people onto their own investment portfolio range to earn even more. There have been suggestions that as many as 3/4 of EJ agents will not stay.

I am not sure FSA allows FAs to go door to door offering advice.

It doesnt allow door knocking for invesmtent products but it does for offering the financial review. They get round it that way.

Is it worth considering them still? or they are in for demise?

End of the road for EJ UK. Lucky escape too

The fact that they pay for all the training as well as basic salary during the training did sound attractive at the time, as well as the potential of earning 100k + doing part-time hours (or was this some BS to get newbies in?)...the guy local to me says he rakes in 100k+ while but he plays golf most days....

Newbies dont have a hope in hell of earning that on part time basis. EJ did take maximum commission most of the time though. So, earnings potential was good if you were a salesperson. However, that would drop big time post RDR. Probably why this sale has taken place.

TEDDYRUKSPIN

newrecruit wrote: »

I got a call from Edward Jones head office telling me that they are not recruiting until the next year. I had forgotten that I applied for their FA position. It was a good few months ago.
But I also hear that they are being taken over and many of their FAs are being sacked...is it true?
I understand that many of FAs are under qualified. The Edward Jones FAs are really sales reps going door to door, but they call them selves Financial Adviser and Stock Broker (fancy stock brokers going door to door selling investments!)
I am not sure FSA allows FAs to go door to door offering advice.
Is it worth considering them still? or they are in for demise?
The fact that they pay for all the training as well as basic salary during the training did sound attractive at the time, as well as the potential of earning 100k + doing part-time hours (or was this some BS to get newbies in?)...the guy local to me says he rakes in 100k+ while but he plays golf most days....

Why o why do people think new financial advisers just come out and earn an excess of £100k+????????????

In order to get to that level many advisers have worked as much as 8 years+. Some don't even make it to that level and are stuck at the £25-£40k level - that being lucky.

Advisers can not carry out door to door sales. You can not even do this by the financial review method. FSA have been hammering about this big style!

What they do have, like many other companies, is the trusty or not so trusty telephone system / contact opportunities. These are either based on existing customers or new contacts brought by a specific company. Similar to many existing IFA's.

This role is very much like a outbound telephone sales adviser role to be honest. They recruit newbies to do the telephone calls which is one of the most dreaded things to do. Some people like it, some don't. I am a face-to-face person. I just hate carrying out transactions over the phone.

Although a takeover is on the lines, the new company does not have a current budget for new trainees. Mainly due to the new level 4 / RDR rule (which is still vague!!!!). The cost of training people up to level 4 will be very very expensive.

To give you a ball part figure. Financial institutions spend roughly £9k on training new recruits i.e. TSB, HSBC, etc etc. Sounds over priced but the reason for this, is that previous training was done in-house. The in-house team all resigned and set up a company (self-employed). They demanded more money for the training and this raised the cost. Not forgetting the general administration such as CRB checks (which cost £60) etc etc. So the costs increase and stack up. All the above only based on level 3 examination (i.e. CeFA / FPC etc). Now they want AFPC (level 4) and that will add a further £10k easily as the examination is more complicated and difficult. Why? Surprisingly not many training firms actually have the knowledge to train people to AFPC! Crazy eh. Training experts only have examination up to level 3 as well.

Now you know why many companies are panicking!!!!

Finally, HSBC, Lloyds TSB, Abbey etc have stopped recruiting new trainees.

newrecruit

I am just curious....Edward Jones are commission only but Towry Law are fee based, how will this work? are the Edward Jones FAs being retrained?
What is going to happen...to the existing clients and FAs of Edward Jones?
Edward Jones gets their clients from door to door, focused on private investors, but Towry Law gets the leads from referrals, focused on clients with much larger sums to invest....so how will this work?
Did Edward Jones lose too much money by investing in newbies who came on board and as soon as the training was over they left?
Edward Jones FAs are also Stock Brokers so they can sell individual stocks and shares, correct? But Towry Law are fund managers....will they lose the ability to act a stockbroker after the merger?