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Edward Jones Fined $750,000 for Failures to Train Stockbrokers Doing Phone Solicitations

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Edward Jones was fined $750,000 for violations of a State regulations for phone solicitations, failures to train and supervise stockbrokers making phone solicitations and the ensure compliance with phone solicitation rules. (March, 2014 C-2012000002).

Phone solicitations–cold calling–searching for new customers, is a common technique of many stockbrokers. But these cold calls can easily lend themselves to overselling and the pushing of the envelope past the edges of accepted broker activity. The stockbrokers have a short window of time to grab a person’s attention and to follow all of the regulations of the industry. It isn’t easy to do both. We have found that bad brokers almost always use cold calls to find new customers. Some people are just incredibly persuasive over the phone, and some customers are particularly vulnerable to the cold call. The combination, without proper follow-up and appropriate recommendations, can be very damaging.


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