Hubbub over proprietary products
The announcement last week that Edward Jones will launch a line of affiliated mutual funds for its recently introduced registered investment adviser platform caused a real stir among readers. Most comments about Bruce Kelly and Jason Kephart's story expressed disappointment that the company would go against its long-stated policy of not selling proprietary products.
“Well, they created their own "professional designation' quite a while back, so why is anyone surprised? EJ is no better than any major B-D player ... they were just more convincing in selling the "Awww shucks, we're just your neighbor on Main St.' drivel.”
— No One of Consequence, CFP(r)
“While perhaps not the primary reason for this latest initiative, it is not hard to surmise that a secondary purpose may be to try and make Jones' clients "stickier' to the firm than to the advisers.”
“Oh no, Eddie Jo, say it ain't so!”
— Clients First
“Selling American Funds products and receiving a revenue share was a work-around to allow Edward Jones to say, "We don't sell proprietary products.' They still profit from selling expensive products to customers when cheaper alternatives exist. It's like when Japanese or Indian beer brands say "imported' on the package because they're produced in Canada.”
“It looks as if EJ is going down the slippery slope to be as conflicted as the big wirehouses. Someone needs to call them out on this, as they are going the wrong way.”
— Interested Investor
“Agree 100%. Ted Jones is rolling over in his grave. I still cannot believe that they went the direction of fee-based compensation. Prior to the current management change, they were so entrenched in doing what was right for the client. A SHAME!”
— Frank Smith
Go to InvestmentNews.com/EJ to read the story related to these comments.