Edward Jones investments

nlamont

Somewhat surprised to have a nicely-turned out guy from Edward Jones at the door 'Bet you don't often get stockbrokers calling at the door?' saying he was moving to the area and setting up an office, and going round getting to know potential customers. Offering advice on pensions, investments and tax.

Seems to be a big American stockbroker company. Does anyone know:
- is this their normal modus operandi?
- any satisfied customers here?
- pros and cons of getting advice from them rather than a local IFA?

dunstonh

- pros and cons of getting advice from them rather than a local IFA?

IFAs are not stockbrokers so you cannot compare the two.

There are 4 companies called Edward Jones on the FSA register. One is no longer authorised (Postcode TN27). Two are the same company but have switched networks and one is currently with the Sesame Network (CF64). The last one seems to be a large salesforce of IFAs, although they appear to undertake a number of other areas as well(E14).

So, if it is one of those, they are all IFAs and not stockbrokers (although the last one may have stockbroking activities linked to it). I have never heard of a stockbroker knocking on doors. Either they are desperate for business or have other motives.

Personally, I would stick with a local IFA but seeing as I am a "local" IFA, I guess I would say that . Larger firms tend to have a more sales based mentatility. Almost certainly there will be internal league tables of performance etc.

As they said on rogue traders the other day, never buy you services or goods from anyone that knocks on the door as a cold call.

cheerfulcat

Hi, nlamont,

It *seems* to be a legitimate IFA firm

http://www.edwardjones.com/cgi/getHTML.cgi?page=/GBR/home/index.html

But I agree with dunstonh, it seems a tad desperate to be knocking on people's doors...
Cheerfulcat

whiteflag_3

Hello nlamaont ,Dunston and Cheerfulcat

It *seems* to be a legitimate IFA firm

http://www.edwardjones.com/cgi/getHTML.cgi?page=/GBR/home/index.html

But I agree with dunstonh, it seems a tad desperate to be knocking on people's doors...[/QUOTE]

Done a bit of research - They are not IFAs they are "whole of market" advisers IE No Fee Option -certainly not Stockbrokers

They are a legitimate firm however would anyone want to deal with a firm whose first contact is a breach of FSA regulations.

As the individual was touting for business he should have given an Initial disclosure document to nlamont to make his status clear . So two rule breaches and he's not even in the door yet !

Cheerfulcat thanks for the website link however dont you think the website is really poor. Good IFA websites make it clear what services they offer and highlight the benefits their independence. Its seems these companies and their ilk - St James Place for example fill their homepage with waffle to hide their limited advice and limited product range.

No mention on the E Jones site they are not authorised to do pension transfers? seems strange for a "big outfit"
PS where they say they have "100s of offices nationwide" means we have lots of people on self employed contracts working from home!

ioscorpio

They constantly advertise for sales people on Monster job site, they are an American co expanding into the UK. I had their info pack sent me, , but they expect you to have a lot of contacts or you have to do a lot of prospecting, I have only seen one of their offices in Lichfield city centre. I did not it any further.

nlamont

He gave me his business card, which had an address in the City of London, plus a local (Edinburgh) phone number, and an A4 high-quality printed bit about pensions, education fees, tax advice etc. Nothing specific about status, which is why I was asking here. Definitely described himself as a stockbroker and investment adviser - not an IFA.

nlamont

Followed up the other day with a hand-written card thanking me for allowing him to introduce himself, and offering his services. The card bears the URL https://www.edwardjones.com as above, and 'Authorised and regulated by the FSA and a member of the London Stock Exchange'. When you say 'No Fee Option' do you mean the wouldn't work for a fixed fee rather than commission?

cheerfulcat

whiteflag wrote:

Done a bit of research - They are not IFAs they are "whole of market" advisers IE No Fee Option -certainly not Stockbrokers

Hi, whiteflag,

Sorry, I forgot about the new categories of advisers :-). Having looked more closely at their website, I see that they do seem to offer a discretionary stockbroking service; however, I worry that it says that they have research coverage on *selected* companies...this implies the possibility of a conflict of interests where EJ might be house broker.

They are a legitimate firm however would anyone want to deal with a firm whose first contact is a breach of FSA regulations.

As the individual was touting for business he should have given an Initial disclosure document to nlamont to make his status clear . So two rule breaches and he's not even in the door yet !

They have already been fined in the US for breaches of anti-fraud laws

http://www.consumeraffairs.com/news04/ca_edw_jones.html

http://www.stockbroker-fraud.com/edjonessettlement2.htm

Cheerfulcat thanks for the website link however dont you think the website is really poor. Good IFA websites make it clear what services they offer and highlight the benefits their independence. Its seems these companies and their ilk - St James Place for example fill their homepage with waffle to hide their limited advice and limited product range.

No mention on the E Jones site they are not authorised to do pension transfers? seems strange for a "big outfit"
PS where they say they have "100s of offices nationwide" means we have lots of people on self employed contracts working from home!

I agree, whiteflag, it is not very clear from the site what they actually *are*!

Cheerfulcat

dunstonh

When you say 'No Fee Option' do you mean the wouldn't work for a fixed fee rather than commission?

As from July this year, you are not allowed to call yourself independent or IFA if you do not offer the option for the client to pay by fee (and have commission rebated). If this option is not made available, you are called a whole of market advisor. Some companies that have gone down this route have looked at other "names" to hide the fact that they are not IFAs.

This firm could be totally fine and you have no problems. However, cold calling, 2 breach of FSA rules before they even advise you and the fact they are not independent are just a few reasons why you should act carefully. Add in the fact that US companies setting up in this country tend to have a history of heavy sales tactics and internal sales league tables and sales based bonuses on performance. Then top it off with the fact that a half decent stockbroker would just not go door knocking.

whiteflag_3

Sorry, I forgot about the new categories of advisers :-).

No need to apologise Cheerfulcat, i was using the point to highlight the fact that it is so easy to for companies to hide the fact they are not independent.

When you say 'No Fee Option' do you mean the wouldn't work for a fixed fee rather than commission?

nlamont - For advisers to call themselves "independent" when giving investment/pension advice they must offer a fee option for payment, to be able use the term independent. E Jones on their website say they are "whole of market" which means they can sell the products of more than one company but only on a commission. Hope this make sense, however your man should have made this crystal clear before he started handing out the glossy brochures.

I find it difficult to believe that in this day and age, with all the financial scandals and the apparent high level of FSA regulation that there are companies that operate in this way. The words barge pole and wouldnt touch spring to mind!

nlamont

Thank you all - very educational.