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15. Edward Jones

Regulation and Compliance > Federal Regulation > FINRA

Edward Jones Fined $1.1M Over Phone Records

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Edward Jones has agreed to pay a $1.1 million fine in a settlement with the Financial Industry Regulatory Authority, which accused the investment firm of failing to produce complete and accurate call records in connection with 10 separate investigations.

The failures violated FINRA rules, according to a letter of acceptance, waiver and consent, in which the firm accepted the authority’s findings without admitting or denying them.

In addition to the fine, Edward Jones consented to a censure and agreed that within 90 days of the letter’s date, a senior officer will certify in writing that the firm has established and implemented policies, procedures, processes and internal controls designed to remediate the issues cited in the settlement.

FINRA found that from May 2017 to March 2021, Edward Jones “failed to timely or completely produce certain phone records responsive to FINRA document requests” and inaccurately represented to the authority that phone records older than 18 months were not unavailable, “even though that was not the case,” according to the letter.

“The firm also failed to promptly alert FINRA once it learned of its production failures,” according to the document, which Edward Jones’ senior associated general counsel signed on Dec. 8.

The firm’s actions violated Rule 8210, which is essential to FINRA’s ability to investigate possible misconduct by its members, and Rule 2010, which requires members to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business, according to the letter.

“We take our responsibilities to produce information in regulatory inquiries very seriously and have remedied the issues raised in this matter,” an Edward Jones spokesperson said via email.

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