This is part of a series we’ll be releasing over the next few months highlighting soft dollars, hidden fees, and “kick backs” companies may receive when offering investment products to clients.
This week we’ll be looking at Edward Jones, and you can see the Edward Jones Revenue Sharing Disclosure here
This disclosure states that for the year ended December 31, 2014, Edward Jones received revenue sharing payments of approximately $153.2 million from mutual fund and 529 product partners and $55.9 million from insurance partners. Edward Jones’ net income was $770 million.
Take a look at the disclosure, you’ll find the list of companies that offered kick backs to Edward Jones, and their total amounts.
What this means is that these soft dollars create a potential conflict of interest. It is impossible to determine if the products being offered are for your best interest, or a kick back.
Michael Canet is a Registered Representative with TCM Securities, Inc. and can offer securities through TCM Securities, Inc., Member FINRA/SIPC.
