Edward D. Jones & Company L.P. wants to use electronic fund transfers to pay out most of a $75 million client compensation fund.

Edward Jones, St. Louis, a broker-dealer, agreed to create the fund in 2004, to settle a U.S. Securities and Exchange Commission investigation focusing on the company’s disclosure of “preferred fund” revenue-sharing arrangements in effect from 1999 to 2004.

The SEC said the arrangements involved customers of 529 college savings plans as well as ordinary mutual fund customers, according to a compensation fund distribution plan proposal that Edward Jones has filed with the SEC.

Edward Jones has neither admitted nor denied the SEC’s allegations, according to the distribution plan proposal.

Edward Jones says it wants to administer the payment process itself without requiring clients to file claims. Affected clients who disputed Edward Jones’ claim estimates could appeal to an independent consultant.

Edward Jones presents one hypothetical example suggesting that a client who invested $100,000 in a preferred fund family in 1999 might receive about $32 in compensation from the compensation fund.

Edward Jones would make the payments to affected investors who are still customers through electronic fund transfers, the company says.

The proposed plan, which is subject to public comment and court approval, is on the Web at Document Link