Monday, February 22, 2010
Savings Game: Consumer groups push 'fiduciary standard' for anyone giving investment advice
On the Web site of the brokerage firm Edward Jones, under the information and accolades about the company and its investment insights, you'll find the words "Revenue Sharing Information" near the left-hand corner of the home page.
If you click on the link to related pages and wade through the legalese, you'll learn that "product partners" paid Edward Jones $156 million in 2008, half the firm's profit for the year. (No figure had been posted for 2009 when I looked.)
"Product partners" are companies that pay Edward Jones when it sells their products, including mutual funds, college savings plans and annuities that account for virtually all of Edward Jones' sales in those areas. These payments, called revenue sharing, create a "potential conflict of interest" for Edward Jones and its financial advisers, the firm acknowledges on its Web site.
In plain English: When Edward Jones brokers recommend a product, you can't be sure it's because it's best for you or best for them...
Salt-Lake Tribune: Savings Game: Consumer groups push 'fiduciary standard' for anyone giving investment advice
If you click on the link to related pages and wade through the legalese, you'll learn that "product partners" paid Edward Jones $156 million in 2008, half the firm's profit for the year. (No figure had been posted for 2009 when I looked.)
"Product partners" are companies that pay Edward Jones when it sells their products, including mutual funds, college savings plans and annuities that account for virtually all of Edward Jones' sales in those areas. These payments, called revenue sharing, create a "potential conflict of interest" for Edward Jones and its financial advisers, the firm acknowledges on its Web site.
In plain English: When Edward Jones brokers recommend a product, you can't be sure it's because it's best for you or best for them...
Salt-Lake Tribune: Savings Game: Consumer groups push 'fiduciary standard' for anyone giving investment advice
Permalink posted by markw @ 5:15 AM 
 |
 |  |
  |
