Edward Jones paying for advisors’ high-level credentials

Change is afoot at the brokerage firm, which reportedly is reimbursing its advisors for the cost of certifications offered by the Investments & Wealth Institute.

Edward Jones, known for decades as the financial advisor to mass affluent and small-town investors, is quietly guiding its financial advisors to go upscale and chase wealthier clients.

An indication of this change in tactics for the firm with 19,000 financial advisors is Edward Jones putting cash on the table for advisors who are seeking to improve their credentials for clients in this area.

According to one well-placed industry source, Edward Jones is reimbursing its advisors for the cost of seeking certifications offered by the Investments & Wealth Institute, which touts itself as a premier gatekeeper for financial advisor certifications.

Large brokerage firms like Edward Jones have consistently touted the number of certified financial planners they have under their roofs, but the IWI credentials are perceived to be more elite.

“Edward Jones offers opportunities to encourage financial advisors and client support teams to pursue approved professional credentials through tuition assistance, reimbursement, and supported study time,” a company spokesperson wrote in an email. The spokesperson did not respond to questions regarding the IWI designations.

“We are encouraged by how many of our colleagues have earned or are pursuing the 20-plus professional designations we support, including the CFP and/or the [Chartered Financial Consultant] certifications,” the spokesperson added. “In fact, we anticipate having more than 4,500 CFP and/or ChFC professionals by the end of 2024.”

“A lot of firms have gone in this direction, helping their advisors target wealthier clients,” said Jodie Papike, president of Cross-Search, a third-party recruiting firm. “But it requires more hand-holding, because of those clients’ needs. The independent broker-dealers in general right now are trying to offer these resources to their financial advisors.”

Change is afoot at Edward Jones. In 2022, the firm decided to give its financial advisors more flexibility to work in ways other than its tried-and-tested, one-advisor, one-office model. That spurred 700 of its advisors to combine and work in bigger offices, Edward Jones told InvestmentNews last summer.

An Edward Jones spokesperson said that last year, more than 1,400 of its advisors switched to the team model.

For the past 20 years, the wirehouses have been encouraging financial advisors to work in teams, which are more profitable and discourage financial advisors from walking out the door with clients to a competitor.

The IWI designations and certifications have traditionally been pursued by wirehouse financial advisors, who on average work with the wealthiest clients and generate the most annual revenue per advisor in the financial advice industry.

According to its website, the Investment & Wealth Institute offers three primary certifications for advisors; certified investment management analyst, or CIMA, which costs $5,995; certified private wealth advisor, or CPWA, for $7,295; and retirement management advisor, or RMA. The RMA designation has two tiers: $2,495 for online education only or $3,495 for self-study and a two-day event.

Edward Jones is a private partnership that also happens to be one of the largest firms in the retail securities industry. For years, it has focused on training financial advisors and finding professionals — think retired schoolteachers or firefighters — who have strong connections to their communities and might want a second, and far more lucrative, career as a financial advisor.