$18.33 per account EDJ settlement

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donatello's picture
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I'm so happy I got my check for the preferred funds settlement! How about you? And then, hearing we might get a check for working there because of overtime.... awesome! Making money from the firm that spent so much time spouting lies about fellow brokers that were doing well and to those who left. I read Broke24-7 who said his region doesn't do that...Broke----they do, and you don't stop them. How many times have you told the newbies not to believe the hype when they come back from St Louie and spout the garbage? A cult has "group speak", and when someone doesn't speak, it says the same thing. I was told by EDJ it is human nature---the human condition....really? We can't control our behavior any better than that? Funny that we had someone leave the firm I work for now, and we got an e-mail saying where he went, and telling us to give his phone number to clients that might call. He was producing $500+. The e-mail was from compliance.
Eddie is hurting. Lawsuits galore, and the one for defamation and slander from a broker who moved away from the mess that is Jones.....It's going to be a good year, x-Jonesies...wait and see. It's going to be a good year!

Have any of you thought about organizing a defamation and slander class action? Just wondering......

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donatello wrote:
I'm so happy I got my check for the preferred funds settlement! How about you? And then, hearing we might get a check for working there because of overtime.... awesome! Making money from the firm that spent so much time spouting lies about fellow brokers that were doing well and to those who left. I read Broke24-7 who said his region doesn't do that...Broke----they do, and you don't stop them. How many times have you told the newbies not to believe the hype when they come back from St Louie and spout the garbage? A cult has "group speak", and when someone doesn't speak, it says the same thing. I was told by EDJ it is human nature---the human condition....really? We can't control our behavior any better than that? Funny that we had someone leave the firm I work for now, and we got an e-mail saying where he went, and telling us to give his phone number to clients that might call. He was producing $500+. The e-mail was from compliance.
Eddie is hurting. Lawsuits galore, and the one for defamation and slander from a broker who moved away from the mess that is Jones.....It's going to be a good year, x-Jonesies...wait and see. It's going to be a good year!

Have any of you thought about organizing a defamation and slander class action? Just wondering......

 
Well since there is no cost to us "the none" LP brokers.. Who cares! Everyone knows the GP's have the most to gain and in this case most to lose.. Doesn't effect "us" day in day out. Luckly we aren't traded so we doesn't have upset stockholders, so the point I am trying to make is: what do you former brokers (REALLY) care so much for??? Smile, take your check and MOVE ON! - All of us here at Jones have.
 
Miss J

new_indy's picture
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Joined: 2007-03-28

Good thing there wasn't an essay question on the series 7 Miss J....

nestegg's picture
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Joined: 2007-06-14

Shouldnt they really be compensating the clients for being pushed into preferred funds and not the brokers???? How were the brokers hurt in all of that?

uwec1986's picture
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Joined: 2006-04-05

You can thank me personally for all that cash...I got the ball rolling the Revenue Sharing investigation...$200+ million and counting.....

Spaceman Spiff's picture
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donatello wrote:
I'm so happy I got my check for the preferred funds settlement! How about you? And then, hearing we might get a check for working there because of overtime.... awesome! Making money from the firm that spent so much time spouting lies about fellow brokers that were doing well and to those who left. I read Broke24-7 who said his region doesn't do that...Broke----they do, and you don't stop them. How many times have you told the newbies not to believe the hype when they come back from St Louie and spout the garbage? A cult has "group speak", and when someone doesn't speak, it says the same thing. I was told by EDJ it is human nature---the human condition....really? We can't control our behavior any better than that? Funny that we had someone leave the firm I work for now, and we got an e-mail saying where he went, and telling us to give his phone number to clients that might call. He was producing $500+. The e-mail was from compliance.
Eddie is hurting. Lawsuits galore, and the one for defamation and slander from a broker who moved away from the mess that is Jones.....It's going to be a good year, x-Jonesies...wait and see. It's going to be a good year!

Have any of you thought about organizing a defamation and slander class action? Just wondering......

 
My region must be similar to B24's, because we have guys leave from time to time and I've never heard anyone speak badly about them.  Especially not to the extent that would cause someone to file a defamation and slander suit.  I'm not saying it doesn't happen, but I've not heard it. 
 
Yeah, Jones is really struggling right now.  I'm not sure how we're keeping the lights on.  My LP is only projected to make 18% this year.  I don't know how I can make it.  I'm sure the GPs are struggling too.  I'm not sure how they're going to make those payments on their Bimmers. 
 
All sarcasm aside, while the lawsuits are definitely not what you want to see from your company, Jones is not hurting in any manner.  Net revenue for 2007 was up 18% over 2006.  We have 9% more FAs, 12% more client assets, and a 12% pretax profit margin (the highest margin in 10 years).  So,  you keep spouting off that Jones is hurting.  I'll keep cashing my LP checks.     
 
While Miss Jones might not have been incredibly eloquent with her previous post, the message is correct.  What happens with the class action suits and all that garbage doesn't really affect us in the field.  Oh, we get some questions about it, but it doesn't change the relationship we have with our clients. 
 
It is going to be a good year.  Hopefully for ex-Jonesies as well as Jonesies.   
 
 

Spaceman Spiff's picture
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uwec1986 wrote:You can thank me personally for all that cash...I got the ball rolling the Revenue Sharing investigation...$200+ million and counting.....
 
Just curious, what exactly are you counting in your $200 million? 

uwec1986's picture
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I think it's higher but I'll let you bring up EJ's U4 at the FINRA site so you can add it up yourself.  Search for Firm and then "View Full Report as PDF"...you'll see all the official fines:  http://www.finra.org/InvestorInformation/InvestorProtection/ChecktheBackgroundofYourInvestmentProfessional/index.htm

Incredible Hulk's picture
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Merrill had one fine that was $200MM by itself. I guess they're a REALLY bad firm by your standards...

uwec1986's picture
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Not bad...hipocritical...that's the issue all us ex-cultists hang our hat on.  The firm also lies and distorts the truth to their IR's...oops...FA's.

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bragging about LP checks?
bragging about not being public?
 
Sound like two more jones brain encryptions.
 
Soon they will tell us we are getting a bad deal because we have to pay for the "upkeep of our own computers" (they won't even understand what I a mtalking about.)
 
Here a post I sent to Broker 24:
 
Broker24,
 
Cults have certain characterisitcs.  Three of the most prominent are isolation of its members, destroying the reputation of those that leave and having the "we are the only ones that do it right" attitude.
 
Jones is guilty of these.
 
(I am not angry, so please do not read any negative voice inflection into this post.) 
 
If jones methods are so righteous, why the isolation?  Why can't jones reps attend industry events?
 
Why can a rep be held up as the "model for all newbies to copy" and then when he/she leaves 2 months later, the new ir meetings for the next year are just meetings for the firm to bash that same reps reputation? 
 
Why do jones reps automatically bash the investments offered by other firms that jones doesn't offer as unethical and/or unsuitable?  This is usually done with a very pompous attitude. 
 
When I first left, a jones "buddy" stopped by my new office.  He actually walked in and explained to me that if I put people in a mutual fund at my new b/d, it's a less ethical transaction than putting a client in the SAME fund at jones. (figure that one)
 
Two jones guys walked in to my office (at seperate times) and the FIRST thing they asked was, "Who pays for the upkeep of your computers?".  (Obviously a jones brain encripted phrase.  Another cultic behaviour.)
 
You have never had a pompous attitude in your posts-I appreciate that.
 
Anti-jones cult...not really.  Just keepin it real.
 
--------------------------------------------------------------------------------------------------------------
jones folks-once being a jonesified kool aid drinker myself, I feel bad for your naivity.  Life is so much better outside.
 
 

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I've not visited the FINRA site before, so thanks for the link. 
Maybe I'm not reading the PDF correctly, but I can only find $76.75 million in fines.  $75 mil (the one Doug Hill paid his $3 mil for), one for the state of Maine for $250K, and one for Missouri for $1.5 mil.   I believe there are several entries for the same fine listed. 
 
I find it funny that LPL was fined for the same exact thing.  Now, the fine wasn't as large, but still the principle is the same.  Does that make LPL a bad firm too?  I guess I can't go work for them either.  Out of the frying pan into the fire.
 
I took a little time to search other firms like AG, Merrill, Raymond James.  All of them have been fined.  Failure to supervise, illegal trading, not getting the best price, etc were all very prevalent at all of the firms.   I saw several entries for fines on fee based accounts that were not regulated properly.  I think MS got dinged pretty good for that one recently. 
 
You can keep riding that "I got the ball rolling on RS" horse, but it's going to give out on you one of these days.  I find it terribly ironic that while we got fined $75 mil for doing the "illegal" revenue sharing they didn't say to stop.  Last year on mutual funds alone (we also get RS on annuities and 529 plans) Jones made just shy of $125 mil on revenue sharing.  If you add the annuities and insurance it jumps to $166 mil!  How's that make you feel, big boy?

footsoldier's picture
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Spiff-
 
The difference with LPL was that none of it went to the FA. At Jones not much of it stays with the FA.

Incredible Hulk's picture
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GoneIndy02 wrote:  
Cults have certain characterisitcs.  Three of the most prominent are isolation of its members, destroying the reputation of those that leave and having the "we are the only ones that do it right" attitude.
 
Jones is guilty of these.

This is one of the same arguments that have been made from the time I first found this site. I'm not going to waste hours debating a topic that neither one of us would change the others mind. But (there's always a but) in 2003 Bachman said to a group of brokers in my area and our clients (roughly 300) that Jones "was not the only right way" to do business. That we were "one right way, but not the only right way." Was this an isolated event or a presentation given multiple times in multiple cities? You have your view, I have mine.

Also, as trivial as it may be, I recently attended a wedding of a current broker where 4 previous EDJ reps also attended. Albeit, 2 no longer in the business. One is at MSDW and the other at AGE. Maybe this was an isolated event, or maybe your situation was an isolated event. You have your view, I have mine.

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The clients don't know where the money goes.  They just know that there is a revenue sharing agreement.  So, I get your point, but if the two companies got fined for revenue sharing then they got fined for the same practice materially. 
The money only goes back to FAs as P&L credits.  Then it only matters if you are profitable and what the bonus bracket is.  I would guess that the majority of the RS money stays with the firm.  Well, at least with the GPs.

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I just re-read my post- I just celebrated 2 years on the site!! Because of my "closed minded" view, I'm sure someone will tell me that I am still only 6 months out, that I took over a $50MM book and I have no clue about anything. By the way, to get back on topic, I got 2 $18.33 checks yesterday too. I think I'll take my family to the Chinese restaurant next door to my office and buy another $9.99 pair of shoes from Payless to go with my K-Mart suit and Santa Claus tie that I got driving my '79 pinto after doorknocking last Saturday. If there's anything left over, I think I'll send Doug Hill a thank you card for allowing me to make him so much money these last 6 months.
Signed, Incredible Hulk, AAMS

Spaceman Spiff's picture
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Incredible Hulk wrote: GoneIndy02 wrote:
 
Cults have certain characterisitcs.  Three of the most prominent are isolation of its members, destroying the reputation of those that leave and having the "we are the only ones that do it right" attitude.
 
Jones is guilty of these. This is one of the same arguments that have been made from the time I first found this site. I'm not going to waste hours debating a topic that neither one of us would change the others mind. But (there's always a but) in 2003 Bachman said to a group of brokers in my area and our clients (roughly 300) that Jones "was not the only right way" to do business. That we were "one right way, but not the only right way." Was this an isolated event or a presentation given multiple times in multiple cities? You have your view, I have mine. Also, as trivial as it may be, I recently attended a wedding of a current broker where 4 previous EDJ reps also attended. Albeit, 2 no longer in the business. One is at MSDW and the other at AGE. Maybe this was an isolated event, or maybe your situation was an isolated event. You have your view, I have mine.
 
I heard Bachman say that many times.  It wasn't an isolated event.  Now, Doug, he might have felt differently. 

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My situation was in no way an isolated event.  Others in this thread can add their own experiences if they care to.
 
I did not hear the Bachman speech, nor was that attitude ever present at ANY jones meeting that I ever attended.   
 
I appreciate your input. Congrats to the new groom.  He hasn't been tainted as bad as many have.  
 
Your post still doesnt answer the question: Why does jones not allow their brokers to attend industry events?  What are they afraid of?  Some of the best ideas are found at these industry meetings.  Your clients don't get these non-jones ideas I guess.
 
Read some of the posts when someone speaks of an energy partnership.  The pompous jones replies are completely negative and display ignorance of planning issues around the product.  Wouldnt this fall under the "one right way, but not the only right way" category.  It should, but it normally doesn't.
 
 
 
 

donatello's picture
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This is so much fun! I love my $18.33 and all my clients calling and mailing them in! It's wonderful. I get to frame the letter that came with it and put it up in my office, and tell everyone the story of EDJ.....the real story. Call all your clients and those few that didn't come. It's going to be a great year....I'm telling you!
 
Just for the record, I still think I'm on to something with another class action against EDJ for slander. I just found out there are a few still bad-mouthing e-Jonesies 2 years out and counting! Guess they are a little irritated that the 20 out of 50 that left in the region in 2 years are still bringing those accounts in and getting paid extrodinarily well to do it. Folks...give it up. Your LP WILL be affected. Don't be so foolish...it's embarrasing and it's just a matter of time.
 
Before I forget, did any of you see the article about the sheep-shearer gone EDJ FA?  It's awesome. The reporter was astounded that a person who was qualified for sheep-shearing and never worked in financial services or had any background was hired by EDJ. Must have something to do with "shearing your clients"!  Can't wait until EDJ gets managed accounts. Here's what will happen....UIT for a year or two (4% upfront)...then managed account! Upfront and then ongoing....Can't wait! SUPERSTARRRRRRRR!!!
 
 

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Spaceman Spiff wrote:
The clients don't know where the money goes.  They just know that there is a revenue sharing agreement.  So, I get your point, but if the two companies got fined for revenue sharing then they got fined for the same practice materially. 
The money only goes back to FAs as P&L credits.  Then it only matters if you are profitable and what the bonus bracket is.  I would guess that the majority of the RS money stays with the firm.  Well, at least with the GPs.
The difference is the EJ took out an ad in the WSJ saying how bad the other guys are and then...BAM...$75 mil. fine.  EJ is so hipocrital...and still is.
Don't bother with the whole P&L credits thing...90% of all the RS dollars stay in the GP's pockets.  GP's want to annuitize their revenue but think it's a sin if you do it (ie...lower payout on C-shares and no fee-based accounts)  Just another hypocrisy.
Spiff, I'm glad you're happy there and I think you're one of few reasonable EJ guys on the site but if you look outside a bit more...you'll leave and I'll be happy to help you do it.

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uwec1986 wrote: You can thank me personally for all that cash...I got the ball rolling the Revenue Sharing investigation...$200+ million and counting.....

Citigroup (parent of Smith Barney) just dropped $1.6 Billion (with a B) to settle on Enron. Smith Barney must be considerably worse than Merrill or EDJ.

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donatello wrote:This is so much fun! I love my $18.33 and all my clients calling and mailing them in! It's wonderful. I get to frame the letter that came with it and put it up in my office, and tell everyone the story of EDJ.....the real story. Call all your clients and those few that didn't come. It's going to be a great year....I'm telling you!
 
Just for the record, I still think I'm on to something with another class action against EDJ for slander. I just found out there are a few still bad-mouthing e-Jonesies 2 years out and counting! Guess they are a little irritated that the 20 out of 50 that left in the region in 2 years are still bringing those accounts in and getting paid extrodinarily well to do it. Folks...give it up. Your LP WILL be affected. Don't be so foolish...it's embarrasing and it's just a matter of time.
 
Before I forget, did any of you see the article about the sheep-shearer gone EDJ FA?  It's awesome. The reporter was astounded that a person who was qualified for sheep-shearing and never worked in financial services or had any background was hired by EDJ. Must have something to do with "shearing your clients"!  Can't wait until EDJ gets managed accounts. Here's what will happen....UIT for a year or two (4% upfront)...then managed account! Upfront and then ongoing....Can't wait! SUPERSTARRRRRRRR!!!
 
You go ahead and frame the letter if you need to bash your previous firm to make yourself feel good.  I'm sure you're clients won't wonder for a second if your firm does revenue sharing.
 
I love to hear guys like you whining about the Jones guys in your old region talking bad about you.  Thin skin.  You want to talk about hypocritical?  How about all of you guys who come on this board everyday and do nothing but look for ways to bash Jones.  Isn't that the pot calling the kettle black?
 
IMHO there's nothing embarassing going on at EDJ.  I don't even feel that the revenue sharing fine was embarassing.  I'm still confused about getting fined, but not being told to stop.  It's like getting pulled over by a cop for speeding, getting the ticket, then getting the OK to continue driving at that speed.  I just don't get it. 
 
The "story" you must be referring to is the Times article from the UK.  You should have asked about the paragraph with very little detail on his background other than his previous job.  You missed talking about the part that said he was hired 8 years ago.  That he has survived in tough financial market, in a country that historically hasn't been chock full of investors.  I don't know Angus Kirk, but I'll bet he's every bit the broker you are.  Here's the paragraph/story that the TMNT is talking about:
 

"Sheep shearing is a world away from working as a stockbroker and financial adviser. But that didn’t stop financial services firm Edward Jones taking on Angus Kirk eight years ago. Although Kirk had more experience handling sheep than other people’s finances, the company reckoned he had the right attitude so it hired him."     

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I see the Incredible Dolt is making connections were no connections exist...EJ's HQ is full of hipocrits...that's the issue.  Open your eyes, you're being lied to and taken advantage of.

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OK  - the word is HYPOCRITE.   ED's HQ is full of HYPOCRITES.  If you are going to keep spouting off, at least spell the word correctly. 

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I love to hear guys like you whining about the Jones guys in your old region talking bad about you.  Thin skin.  You want to talk about hypocritical?  How about all of you guys who come on this board everyday and do nothing but look for ways to bash Jones.  Isn't that the pot calling the kettle black?
--------------------------------------------------------------------------------------------------------------------
Thin skin?--Complaints of slander is not thin skin.
Pot calling the kettle black?--Other firms aren't proclaiming "A Shares, A Shares".  Jones clients are shocked when I show them that many VAs and managed money platforms are less expensive.  (They really are..many undisclosed costs are listed in supplements)
 
No one will address the "upkeep of computers" because you dont see how badly you're being hosed.
 
No one will address the isolation (save Broker 24), which is a paramount cult characteristic.  Spiff, why is isolation so important to Jones?
 
You have written off the pattern of character assassination for ex-members as us being thin skinned. (Another cultic behaviour.)
 
The "Bachmann speeches"-Don't most cult leaders publickly say things to proactively divert attention away from the cult's behaviours. (look it up Hulk) 
 
Why don't any of you address the cultic behaviours I have pointed out?  You all go around these issues.
 
Notice I have not addressed some of the fines/RS stuff.  For me the the greater issue is that you are in a cult.  You need deprogramming.
 
Go online and do some research.  Step back and reason for a moment.  Read up on cult characteristics and compare them to the policies put in place where you work.
 
Other ex-jonesees, please post some of the horrible things jones pulled when you left so Spiff can see that these are not isolated events.
 
 
 
 

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GoneIndy02 wrote:I love to hear guys like you whining about the Jones guys in your old region talking bad about you.  Thin skin.  You want to talk about hypocritical?  How about all of you guys who come on this board everyday and do nothing but look for ways to bash Jones.  Isn't that the pot calling the kettle black?
--------------------------------------------------------------------------------------------------------------------
Thin skin?--Complaints of slander is not thin skin.
Pot calling the kettle black?--Other firms aren't proclaiming "A Shares, A Shares".  Jones clients are shocked when I show them that many VAs and managed money platforms are less expensive.  (They really are..many undisclosed costs are listed in supplements) - You are correct.  Jones is the only place that took a stand and said that A shares are better for the average investor.  Most of the other firms basically let the brokers decide and dealt with the arbitration cases as they came.  For the non-average investor managed money platforms might be less expensive.  It depends on the platform.  You will have a difficult time convincing me that there are VA's out there cheaper than A share mutual funds.  I don't even feel they should be compared to each other.       
 
No one will address the "upkeep of computers" because you dont see how badly you're being hosed. - I don't pretend to understand how all of the charges for my computer, printer, fax, phone, and other basic office equipment breaks down.  I know that when I started 5 years ago the charge was the same and I didn't have half of the tools I have now.  Everything ran on that stupid satellite system that didn't work when it rained or got cloudy.  I dont' have to think about my computer, printer, fax, phone etc.  If it breaks for some reason, I call HQ and they fix it or replace it.  When it reaches the end of it's useful life, they bring me a new one.  They are constantly adding tools to my tool box.  I don't have to think, plan, or worry about any of it.  Am I getting hosed?  Possibly.  Could I piece meal a system together myself for a little less money?   Probably.  Could I spend more time prospecting, selling, or spending time with my family if I didn't have to worry about it?  Definitely.
 
No one will address the isolation (save Broker 24), which is a paramount cult characteristic.  Spiff, why is isolation so important to Jones? - My guess is that there are two reasons.  First, because we are big enough and have enough clout to have our own meetings with places like American Funds.  For the vendor, they know they are only talking to EDJ FAs so they can tailor their message specifically to us.  Second is a bit of purposeful isolationism.  That's one reason I like this board.  I like talking or hearing from people from other firms.   
 
You have written off the pattern of character assassination for ex-members as us being thin skinned. (Another cultic behaviour.) - The worst I've ever heard anyone say about an FA that has left Jones is that they left because they didn't get the RL job.  So, they went indy and started their own firm.  I've heard people say that the former FA didn't want to prospect anymore so he went to a bank.  I've heard people say that the former FA wanted to work with HNW people so he went to ML.  I've NEVER heard anyone say anything about a former FA that could be construed as slander.  I'm sure it's happened before.  But I've not heard it. 
 
The "Bachmann speeches"-Don't most cult leaders publickly say things to proactively divert attention away from the cult's behaviours. (look it up Hulk) - What do you want the man to say?  "You know, you all would be better off if  you went independant, or to some other brokerage firm."  Of course he's going to say that he believes that EDJ is the best firm out there.  I wouldn't expect anything different from the MANAGING PARTNER of my firm.  I hope they continue to say it.  He repeatedly said that Jones is only one of the right ways. 
 
Why don't any of you address the cultic behaviours I have pointed out?  You all go around these issues.
 
Notice I have not addressed some of the fines/RS stuff.  For me the the greater issue is that you are in a cult.  You need deprogramming.
 
Go online and do some research.  Step back and reason for a moment.  Read up on cult characteristics and compare them to the policies put in place where you work.
 
Other ex-jonesees, please post some of the horrible things jones pulled when you left so Spiff can see that these are not isolated events.
 
 
Jones isn't any more of a cult than LPL is.  I'll bet that when all of you get together at your annual meetings in San Diego that a lot of the same stuff goes on.  You talk about how glad you are that you are indy now.  Wish you would have done it sooner.  You're soooo much better of an FA now that  your indy than you were at wherever.  I can't believe those schmucks stay there.  What are they thinking.  
 
I would expect you to say that your way is the best way.  I would expect your leader to say that he believes you are the best thing out there and everyone else should join you.  If they aren't saying things like that, they need to be replaced with someone who is.  
 
 

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uwec1986 wrote:Spaceman Spiff wrote:
The clients don't know where the money goes.  They just know that there is a revenue sharing agreement.  So, I get your point, but if the two companies got fined for revenue sharing then they got fined for the same practice materially. 
The money only goes back to FAs as P&L credits.  Then it only matters if you are profitable and what the bonus bracket is.  I would guess that the majority of the RS money stays with the firm.  Well, at least with the GPs.
The difference is the EJ took out an ad in the WSJ saying how bad the other guys are and then...BAM...$75 mil. fine.  EJ is so hipocrital...and still is.
Don't bother with the whole P&L credits thing...90% of all the RS dollars stay in the GP's pockets.  GP's want to annuitize their revenue but think it's a sin if you do it (ie...lower payout on C-shares and no fee-based accounts)  Just another hypocrisy.
Spiff, I'm glad you're happy there and I think you're one of few reasonable EJ guys on the site but if you look outside a bit more...you'll leave and I'll be happy to help you do it.
 
Not sure if you were around yet Spiff, but there was a day IR's used only Federated and Hartford because it paid 10 times the revenue sharing. It made a significant difference to their bottom line, and their bonus checks. That was corrected later with the .0000045 calculation.
 
 

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By the way that's 10 times American Funds, which most of "us" were using.
 
These were some of the same people that were selling muni bond funds and ripping off 6-7% incomes while the rest of us were selling bonds at 2-3% gross. They were the "best" in the region at helping their clients!

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I was around then.  I wasn't selling at that point, but I was with Jones.  I remember those conversations.  But, I never had to worry about those decisions.  I do remember that the majority of the money was still going to American Funds and Putnam.  The FA who used Federated or Hartford exclusively was rare. 

bspears's picture
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I was recently at a regional LPL meeting discussing LPL's Advisory Consulting Service...I felt out of place not wearing a suit.  Didn't hear any discussions on Jones, just about the platform and the new consultants in the field to help our practices grow.  No one stood up to tell the advisors how to sell BAC on the phone...no role playing..no "I won a trip to Guatamala (sp?)..Just a presentation on how LPL is always looking to improve there service to ME....and the new rollouts on the platform...No cult talks...no "hey..if you know of a person selling cars or shoes..show them the opportunity of selling stocks to people...Sorry Spiff..none of that.  The real difference is...You work for Jones, LPL works for ME....think about it...

Broker24's picture
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Gone, I don't deny some of the issues that are raised about Jones's culture.  But I will point out a few things:
* The majority of FA's don't get wrapped up in the pomp & circumstance at Jones.  Most are adult enough to take the good things and leave the rest.
* Much of the cultish environment you speak of tends to be regionally based (at least it must be, since I don't witness much if it).
* Some of the "we're better than the rest" attitude actually forms out of pride.  I witnessed this at another company I worked at (totally different industry).  We were sort of the accepted industry leader (no, I am not claiming Jones to be), so anytime someone left to go to a competitor, everyone would be bewildered as to why they would possibly want to leave.  And you tend to only cite the GOOD things about your firm, not the BAD things that annoy you.  Human nature.
* Jones does an admirable job of keeping themselves out of the limelight as a private company.  Ever notice how whenever something happens at one of the wires (leadership change, structural change, payout change, writoffs, settlements, etc.) the media is all over it, interviewing "one advisor we spoke with who produces 500K said....".  This is one of the reasons that they "isolate" themselves.  They try to steer clear of all that attention.  Though I would like to have more industry involvement, I actually commend them (from a corporate governance viewpoint). 
* Jones has never been shy about saying that the firm, the culture, and the investment philosophy is not for everyone.
* The computer charge: $1250/mo.  This includes:
T1/DSL cost (depending on location)
Satellite
2 PC's
Color Laser Printer
Copier/Fax/Scanner
2 Telephone System
Server
Software, and annual upgrade subscriptions (in a corporate world, you can't pirate software and use it for years without upgrades)
Cost Basis software (Networth Services, Inc.)
Morningstar Hypos
Realtime Quote System
Contact Management System
Scanning/document management system
Video System, Television, DVD/VCR player
E-mail
Hardware and software maintenance contracts
Oh, and you never have to actually BUY the computer,printer,fax,phone,TV,DVD, etc.  They give it to you.  When it breaks or is too old, they replace it.
 
So that's some of it.  And keep in mind, it's a P&L CHARGE, not a charge to your commissions.  So if you added 100% of that charge back into your profit, you might see $250-$500 in additional bonus per month.  And if you are not yet profitable, it's all absolutely free to you.  So the true cost to you is never $1250.  I can't imagine you can get all of that independantly for much less than $500. 
 
Gone, I am not trying to explain away everything that Jones does.  But I think sometimes the embelishments tip a bit too far in the other direction.  It just needs to be kept in perspective.

uwec1986's picture
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Joined: 2006-04-05

I stand corrected...I was in a hurry...cut a brother some slack...it is a message board after all. 

OICUR12's picture
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Gosh ! I get all the above for a $500 per month.  Oh! I don't have to fund 125% extra for the GP fund.  As a former GP/RL I can see through some of the BS especially on the newbie pages. I can remember giving advice to use Hartford and Federated for the same reasons mentioned. I left a few years ago to cleanse myself of a kool-aide hangover. While I remember a lot of good things about Eddie, It is so refreshing to make decisions for the client first and the firm second

Broker24's picture
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OICUR12 wrote:Gosh ! I get all the above for a $500 per month.  Oh! I don't have to fund 125% extra for the GP fund.  As a former GP/RL I can see through some of the BS especially on the newbie pages. I can remember giving advice to use Hartford and Federated for the same reasons mentioned. I left a few years ago to cleanse myself of a kool-aide hangover. While I remember a lot of good things about Eddie, It is so refreshing to make decisions for the client first and the firm second
 
It took you until the time you were a RL/GP to realize you didn't like the firm?  Boy, you really were drinking the Kool-aide!

bspears's picture
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Joined: 2006-11-08

As far as equipment goes...lets see....I spent probably 4-5k to set my office up...two desktops, networked with my printer (copier scanner..blah blah blah)..contact management software with an advisor overlay...telephone system..with caller ID....I pay for S&P...realtime quotes for free...I looked at my commission statement and it shows my monthly software expense from LPL...125 per month...Oh...I just had my Corp purchase a new laptop for me and for my daughter....wasn't the owner nice...oh thats me.  You can spin all this anyway you want to..but the bottom line is in today's enviroment..with technology whether its high speed internet, internet based trading platforms, equipment..etc..the advantages of being captive vs indy is nill.  We have the inventory, the platform, the research.  Some will say the name recognition is a leg in the door for high networth...maybe thats true..maybe not...I'm okay with 200-600k rollovers from the local factories and a net net payout of 84%...IF you think you're getting a good deal making 35% with a wacked out P/L...and they provide you with 600$ computers and will cover a service call...good for you.  But hindsight tells me..you're getting screwed....some like getting screwed...others go indy. 

bspears's picture
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Joined: 2006-11-08

I know it is a scary world out here.  The propaganda spewed by your company to keep you captive...I remember all the talk in the region when someone would leave..."they won't get 1 client to move"..."the expenses going Indy will eat you alive"...I'm a testatment to the contrary...The clients do and will gladly move to you...and the expenses are what you want to spend.  Technology is at your fingertips...whatever you want to do..you can do..set your office up the way you want...set your practice up the way you want..PROSPECT ANYWHERE..hell you can even transfer clients from other LPL reps and not hear shit from anyone!!

Spaceman Spiff's picture
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Broker24 wrote:OICUR12 wrote:Gosh ! I get all the above for a $500 per month.  Oh! I don't have to fund 125% extra for the GP fund.  As a former GP/RL I can see through some of the BS especially on the newbie pages. I can remember giving advice to use Hartford and Federated for the same reasons mentioned. I left a few years ago to cleanse myself of a kool-aide hangover. While I remember a lot of good things about Eddie, It is so refreshing to make decisions for the client first and the firm second
 
It took you until the time you were a RL/GP to realize you didn't like the firm?  Boy, you really were drinking the Kool-aide!
 
I am curious...why would a seg 5 broker who is probably well north of $500K/year plus profitability bonuses plus the two trips (probably meaningless at that point), Regional leader, GP (the pinnacle of success at EDJ and the best partnership return) leave the comforts of EDJ?   You didn't say whether you went indy or not, so I can't make any assumptions about payout.   

Spaceman Spiff's picture
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bspears wrote:
I know it is a scary world out here.  The propaganda spewed by your company to keep you captive...I remember all the talk in the region when someone would leave..."they won't get 1 client to move"..."the expenses going Indy will eat you alive"...I'm a testatment to the contrary...The clients do and will gladly move to you...and the expenses are what you want to spend.  Technology is at your fingertips...whatever you want to do..you can do..set your office up the way you want...set your practice up the way you want..PROSPECT ANYWHERE..hell you can even transfer clients from other LPL reps and not hear shit from anyone!!
 
Like B24 said, we are adults (for the most part) and we can see through the smoke screen when they say stuff like that.  You have to be happy where you are.  Otherwise, leave.  I like the comfort and ease of running my biz through the EDJ model. 
 
Funny how it's always EDJ that is the evil monster.  What about all those poor schmucks that stay at those horrible firms like Merrill Lynch, Morgan Stanley, UBS, or at the banks?  There's a bunch of propaganda over there too.  They have to make decisions based on shareholders first, then the clients, then the FAs.   But NOBODY ever talks about that here.   

bspears's picture
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Joined: 2006-11-08

I'm not sure EDJ's is the only evil monster..but it is my only comparison.  I have a close friend at Morgan Stanley who, along with a partner, oversees 300mil.  He envies me going Indy, I envy his 300mil.  I would never and have never suggested he leave Morgan..now that I think about it, I've never suggested anyone go to LPL or Indy...its the adults choice.  But, when someone comes on here to defend a 35% payout on a list of things that can be purchased and maintained for the fraction of the cost charged..P/L or otherwise, then I have to give my .02.  I was at Jones, I'm at LPL.  I have the experience to know what I'm talking about..IF I remember correctly, you've never been at LPL nor has Broke24..correct me if I'm wrong.  And, as I've said in the past, I don't want anymore indy's in my town. 

CIBforeveryone's picture
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Spaceman Spiff wrote:Broker24 wrote:OICUR12 wrote:Gosh ! I get all the above for a $500 per month.  Oh! I don't have to fund 125% extra for the GP fund.  As a former GP/RL I can see through some of the BS especially on the newbie pages. I can remember giving advice to use Hartford and Federated for the same reasons mentioned. I left a few years ago to cleanse myself of a kool-aide hangover. While I remember a lot of good things about Eddie, It is so refreshing to make decisions for the client first and the firm second
 
It took you until the time you were a RL/GP to realize you didn't like the firm?  Boy, you really were drinking the Kool-aide!
 
I am curious...why would a seg 5 broker who is probably well north of $500K/year plus profitability bonuses plus the two trips (probably meaningless at that point), Regional leader, GP (the pinnacle of success at EDJ and the best partnership return) leave the comforts of EDJ?   You didn't say whether you went indy or not, so I can't make any assumptions about payout.   
 
Your comments are true, however the sad commentary about EJ is that when you reach the pinnacle of success and become a RL, you get a call every quarter from someone in STL (that may or may not have been as successful as you) and he is filling out a "report card" on your performance; which often times is only as good as the number of people that failed or left to go independent in the last month. This has driven more than one GP/RL to greener pastures (before or after being driven to drinking).
 
 
 
 
 

footsoldier's picture
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Joined: 2006-04-30

I am curious...why would a seg 5 broker who is probably well north of $500K/year plus profitability bonuses plus the two trips (probably meaningless at that point), Regional leader, GP (the pinnacle of success at EDJ and the best partnership return) leave the comforts of EDJ?   You didn't say whether you went indy or not, so I can't make any assumptions about payout.   
 
Spiffy-
 
Maybe the RL looked in the mirror one day and he didn't like what he saw. Or perhaps his conscious told him to seek other pastures that weren't laced with doublespeak. Or maybe he just went indy or to a repuable firm to get away from the culture that you so dearly protect every chance you get.
 
Or maybe he got sick of all the hours he put in for the firm. Or he got less GP than the now retired IT manager Rich Malone! Or perhaps Doug Hill mentored him.....who kows what motivated him to leave your firm. Maybe you are closer to the top now.

Sometimes I think the surest sign that intelligent life exists elsewhere in the universe is that none of it has tried to contact us yet - Calvin

GoneIndy02's picture
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Joined: 2008-03-05

I knew it...They don't understand the "upkeep of computers" topic.  Jones has so indoctrinated them.

donatello's picture
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Joined: 2007-12-22

You don't hear many people trash talking about the Merrill's and the Morgan Stanley's and the Smith Barney's and the UBS's because they have so much to offer that offsets the crap....that's what is not understood by an EDJ guy. LPL understands that. So do many of the other independents. Why is it not understood by Jones brokers??? Because if you investigated, you couldn't stay where you are... plain and simple. These BIG guys don't put the shareholder first and then the FA next and then the client----idiots! Most (almost all) of them put the clients first! Don't you get how competitive it is today? And then, as I ask that question, I realize that EDJ doesn't.  They don't have the $10m accounts and the $5m accounts and have few of the $1m's. The thoroughbreds are not running with the mongrels here. Guys and Gals---Jones swallowers all----you may get the rogue $1m or $2m account, but you have no clue what it's like to manage wealth. Your average account size speaks for you. There are a few smart people at EDJ in every region---maybe 5 out of 50....the rest are sheepshearers gone advisor.... advisors of what?....I don't know anymore. Two years free, and I truly believe most in your regions are the ones I used to see at every regional meeting--- Remember that guy that stood up and got three offices' assets rolled into his and he just had a $15k month (gross) after 3 years of working it and he was the one picked to tell the entire region how to do this business?! I love that guy!
 
Back to my original post....I love my $18.33 check. I have had more calls on it, and it makes me smile! God Bless America!

donatello's picture
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Joined: 2007-12-22

Ice-I don't think I said in my post that I was unsuccessful at EDJ or where I am now or that the corporate cults made me have personal failures. I am not a failure...in fact, the opposite. I attract the clients you describe above. I didn't have the tools at Jones to properly manage wealth in those HNW spaces... especially knowing what I know today. I honestly can say I know the intelligence side of the business (and am still learning after 10+ years in the biz) and not just the sales side...and I'm still learning because I AM SOMEWHERE ELSE. I'm thankful for that.
 
My issue with Jones is defamation and slander. You stop that at EDJ, you stop most of this forum, because nobody really cares if there are people who want to stay there. It's okay.  It is everyone's responsibility to stop. Individuals saying it's a regional thing is a copout.

Broker24's picture
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Joined: 2006-10-12

bspears wrote:
I know it is a scary world out here.  The propaganda spewed by your company to keep you captive...I remember all the talk in the region when someone would leave..."they won't get 1 client to move"..."the expenses going Indy will eat you alive"...I'm a testatment to the contrary...The clients do and will gladly move to you...and the expenses are what you want to spend.  Technology is at your fingertips...whatever you want to do..you can do..set your office up the way you want...set your practice up the way you want..PROSPECT ANYWHERE..hell you can even transfer clients from other LPL reps and not hear shit from anyone!!
 
Foks, don't just pick out what you want to hear in order to bash me.  I was sinmply listing the things you get for the tech charge, and what it costs you.  I wasn't defending it, I was simply stating some facts.  I don't remember saying that you can't get technology, or service, or capture HNW clients, or hatever as an Indy.  I was simply trying to balance the "Jone is the absolute worst, and here is why...." comments with a dose of reality.  The fact is, success is possible with ANY firm, indy or not.  It is all about the person, not the firm.  I have seen absolute success at Merrill, and I have seen absolute train wrecks.  Same with Jones, and same with Indies.  I guess I just opened a can o' worms with prior post.
 
Oh, and Spears, it's BROKER24, not BROKE24.  But I got the innuendo .  Very cute.  I have been missing you the past few months.  I knew you couldn't stay away...

CIBforeveryone's picture
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Joined: 2005-07-12

The TR trying to save my clients after I left sent an old Smart Money or similar mag article out bragging about the average account size at Jones being around 33k or something. It pushed those few larger clients that were hesitant to move over the edge.
 
 
 
 

Spaceman Spiff's picture
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donatello wrote: 
My issue with Jones is defamation and slander. You stop that at EDJ, you stop most of this forum, because nobody really cares if there are people who want to stay there. It's okay.  It is everyone's responsibility to stop. Individuals saying it's a regional thing is a copout.
 
What planet do you live on?  The "defamation and slander" that you think is going on has very little to do with this website.  The people on here like spears or foot have a fundamental issue with the way EDJ is run.  Spears- correct me if I'm wrong, but you've never mentioned that you felt you were being slandered in any way because you left Jones.  Not in a way that would affect your ability to gather assets. 
 
D - maybe you have some serious issue that should be dealt with legally.  But if you're trying to blame your lack of gathering new assets or bringing your old assets over with your on EDJ, maybe you need to spend some time on your prospecting skills rather than on worrying about how to sue EDJ for slander. 

bspears's picture
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Joined: 2006-11-08

Oh lets see...."He only left so he could offer more aggressive investments, that we don't allow here at Jones"...."He couldn't offer big commission products here so he left"...many more little inuendo's. That was the first dude who was in the office for a few weeks..the second wasn't there long enough to matter and we're on our third flunky...yes I've been away for a whopping 14 months...That definately rings of SUCCESS...beware newbies....

Roadhard's picture
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Joined: 2007-02-23

Welcome back Spears!

donatello's picture
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Joined: 2007-12-22

Spiff-bspears corrected you. You were wrong. If you want stories---folks---speak up.
The haughty bashing is systemic in the company. End of story. You're a good person...glad you are not one of the problems. Sorry you have so many that are. There are quite a few people on this forum that would like to see you go into the light.

bspears's picture
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Joined: 2006-11-08

This is like porn...I shouldn't be here...but dang its hard to stay away. 

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