Leaving Edward Jones
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of course they bill you!! c’mon, it is just good business. They flew me to Tempe several times and it was very well done compared to other corporate sales training that I have been in. I was on “salary plus” the entire time, to boot.
After 2 years the bill is half, after 3 years it is zero. Makes sense, and it's not just Jones. Find a LEGITIMATE beef to bash jones with; there are plenty.Most, if not all, larger B/D’ers who pay for training and/or a salary during your early months will come after you to recoup training costs if you leave in the defined period. They may differ on how much and how long, and whether they prorate the recapture based on how much time you served. But coming after you is not limited to EDJ.
LOL…did the other corporate training “bill” you for the trips?
No....because it is illegal.[quote=Broker7]LOL…did the other corporate training “bill” you for the trips?
No....because it is illegal.[/quote]If you signed a contract agreeing to repay money during a defined period, it is certainly not illegal to be pursued to enforce that contract. It may suck, but it's both legal and common practice in our industry.
no kidding…I know the EJ contract well.
I was asking newnew if the other companies he worked for billed him for corporate training. I think not. I have also been told the EJ contract could be contestable in right to work states.[quote=Broker7]no kidding…I know the EJ contract well.
I was asking newnew if the other companies he worked for billed him for corporate training. I think not. I have also been told the EJ contract could be contestable in right to work states. [/quote]That is likely referring to the non-compete or non-solicit portion, but not the training costs, which is subject to contract law not employment laws.
$75K is VERY out of the ordinary… for the second time…give me another comparable example.
[quote=Broker7]$75K is VERY out of the ordinary… for the second time…give me another comparable example.[/quote]
I don’t know why you seem so amazed at this, unless you haven’t been tuned into this for a while. I’m sure there are many comparables, but I’ll cite one: AGE’s training contract is even worse: $75K for 5 years, but prorated so one fifth is forgiven at the conclusion of each year.
Having just come from Arbitration with EDJ, I can tell you what the Arbitrators in my case said about some of the objections by EDJ Legal Team:
1) When Jones tried to point out that I had no prior Securities Industry training and therefore 'owed' them for the training and experience which resulted in my success at Jones and continued success afterward, the Arbitrators dismissed the argument. Their view was that I maintained above standard % performance throughout my career from the begining, therefore though Jones trained me, my success was my own. Further, my branch was profitable after less than two years, so I 'owed' the firm nothing. 2) EDJ second argument was that a study done on my branch revealed that 12 months after I left Jones, 76.5% of the assets had transferred to me. The Arbitrators also dismissed this argument stating that while Jones might be able to track that the assets left EDJ, they could not prove they had acutally come to me. EDJ agreed. 3) EDJ third argument was that the assets I took belonged to EDJ and I had signed a non-compete clause. This was also dismissed- the Head Panelist informed EDJ that the 'assets' do not belong to EDJ- they belong to the client and ulitmately it is the clients' decision on where they want them to go. I was not a transfer broker, so I can only guess based on what I experienced and what I have read- BUT if a transfer broker comes to EDJ and is encouraged and instructed/ assisted in bringing clients with them from their previous firm, EDJ cannot cry foul when that broker leave EDJ and invites clients to join them. So for what it's worth, I would fight them.Thank you munytalks and everyone else with your answers! It is truly appreciated!
[quote=munytalks]
Having just come from Arbitration with EDJ, I can tell you what the Arbitrators in my case said about some of the objections by EDJ Legal Team:
1) When Jones tried to point out that I had no prior Securities Industry training and therefore 'owed' them for the training and experience which resulted in my success at Jones and continued success afterward, the Arbitrators dismissed the argument. Their view was that I maintained above standard % performance throughout my career from the begining, therefore though Jones trained me, my success was my own. Further, my branch was profitable after less than two years, so I 'owed' the firm nothing. 2) EDJ second argument was that a study done on my branch revealed that 12 months after I left Jones, 76.5% of the assets had transferred to me. The Arbitrators also dismissed this argument stating that while Jones might be able to track that the assets left EDJ, they could not prove they had acutally come to me. EDJ agreed. 3) EDJ third argument was that the assets I took belonged to EDJ and I had signed a non-compete clause. This was also dismissed- the Head Panelist informed EDJ that the 'assets' do not belong to EDJ- they belong to the client and ulitmately it is the clients' decision on where they want them to go. I was not a transfer broker, so I can only guess based on what I experienced and what I have read- BUT if a transfer broker comes to EDJ and is encouraged and instructed/ assisted in bringing clients with them from their previous firm, EDJ cannot cry foul when that broker leave EDJ and invites clients to join them.So for what it's worth, I would fight them. [/quote]
That's good. Too bad not all arbitrators would necessarily feel the same way. I am sure tehre are some out there who would say "you signed a contract, kid, now live with it". Although I hope to never be in this situation, I think there are legitimate points for both sides. Jones should not have to absorb the cost of training, paying salary, bonuses, etc. for an advisor that is just a drain on the firm, just to watch them walk across the street (and get paid to bring their book!), watch their assets leave, and have nothing to show for it in the first few years. On the other hand, is that just the cost of doing business?? One final thought.....I think Jones is less concerned about the money, and more concerned about discouraging people from leaving. It costs them much more to recruit and develop a new FA replacement, rather than developing a current FA to profitability. I am willing to bet Jones recoups less than $1mm per year in training costs - and I bet that's even a long shot.
Hello,
I am looking to become an Internal Wholesaler at a Mutual Fund Company where I would need my licenses. I've been with Jones since 11/2009. This side of the business is not for me. At the mutual fund company, I wouldn't be engaged in solicitation of clients, nor would I be a Financial Advisor.
Will Jones come after me for training costs?
I figure that it's not engaged in selling securities or insurance, so I would assume no. Please let me know either way as soon as you can.