(FINRA Case #2016048760501)
Edward D. Jones & Co., L.P. (CRD #250, St. Louis, Missouri) submitted an Accept, Waiver and Consent in which the firm was censured and fined $125,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it overcharged interest on margin loans totaling approximately $708,000 to the owners of customer accounts.
The FINRA findings stated that the overcharges occurred because the firm did not adequately supervise its system for determining the interest rates on those loans. The firm did not test its automated system for grouping accounts for the assignment of interest rates on margin loans. Instead, the firm supervised interest on margin loans by reviewing a monthly report from one of its vendors, but that report incorporated the problem with the logic of the firm’s automated system.
The firm excluded several thousand qualifying accounts from relationship pricing groups, meaning that those customers paid more interest than the firm had agreed to charge. Additionally, the firm did not direct its supervisors to use the reports to review its method of assigning interest rates, and the supervisors sampled only a small number of accounts on the reports.
The firm voluntarily paid restitution of approximately $708,000, plus interest, to affected customers.
If you feel you have been misled or overcharged by Edward D. Jones or any Broker and wish to discuss legal action, please contact Darren Blum at 1-877-786-2552 (1-877-STOCK LAW), www.stockattorneys.com for a free consultation.