I will question you ethics at any time, so that’s out of the way.



Secondly, I don’t use funds at all, unless I’m looking for something special or

unusual. Again, why don’t YOU do the liquidation of Putnam (or whoever)

and demonstrate to the cient that you’re acting in his/her best interest?

Answer…Because you’d have some explaining to do, and deep down you

know it might be wrong.



Third, I’ll ask you once again…are you suggesting that all of the securities in

the accounts that you mentioned are inferior?



Finally, you most certainly are not a grizzled vet…and in truth, you’ve much

to learn.

SP: your

Gents-

What was the topic of this thread anyway? Let's talk about real EDJ service. Cost basis is a nightmare because Jones refuses to participate in the ACAT system that INCLUDES cost basis. I remember reading the IT GP Rich Malone (has he retired yet?) monthly newsletter where this question came up and he felt that the assistants on the front lines (at the branches) were expected to retreive and input that info when assets transferred in-kind. He made it clear it wasn't worth the cost to participate.

Maybe, encouraging the liquidate and transfer concept...Easier for the firm, financially better for the rep and the firm. And the cost basis issue magically disappears.

A++ service. Not.

[quote=eddjones654]

hey JohnDoe,

Could you explain this current problem ..........

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//–>I do know of other brokers at Jones that liquidated and bought other funds both before and after the NAV exchange period, and our compliance dept forced NAV trades onto the broker (rightfully so).  So I don’t know where the oversight was inadequate, and since the article doesn’t tell us, I can’t comment on it.

If I had a guess, it would be that some field supervision guys weren’t doing their job, and brokers got away with what I described above.

jd,

repaying $25 million in commission (by your employer's estimate) the entire FS department must have been taking a few days off in order such a volume to occur.

     nudge nudge wink wink!!     say no more say no more

[quote=Starka]Oh, and by the way...I've found that contra firms, especially the large, well- repected firms such as you've mentioned, are open and helpful when called for cost basis information, particularly when they are asked in a polite,
professional manner.[/quote]

Actually Starka & Hulk I'll go one step farther in this debate about cost basis reporting in the midst of ACAT's & throw in my $.02 for what it's worth.

The "Cost Basis Reporting Service" (CBRS) is a subsidiary of DTCC and provides brokerages doing ACATs with the original cost basis information, if both sending and receiving firms are subscribers.

There are currently 29 firms enrolled (according to LPL's BranchNet). All of the ACAT's I have done recently from MSDW, Merrill and AGE have all come with cost basis provided.

Here is a link to the DTCC site...maybe you can suggest this in the suggbox Hulk. I am surprised Edward Jones is not enrolled, it seems to me that would be something they'd jump on?

Forgot the link :

http://www.dtcc.com/ProductsAndServices/clearing/cbrs.html

If you search through the DTC site you'll see the the following:

BOARD OF DIRECTORS: BIOGRAPHIES

NORMAN L. EAKER is General Partner of Edward Jones. He is responsible for Global Operations in the United States, Canada and the United Kingdom. He previously held the positions of Director of Internal Audit, Head of Mortgage Operations and held various leadership roles within Operations. Prior to joining Edward Jones, Mr. Eaker worked as a Certified Public Accountant for Peat, Marwick & Mitchell & Co. from 1978 through 1981. He is a member of the SIA Operations Committee, and a former member of the Chicago Stock Exchange Board of Governors

There are several reasons why Jones does not belong to Cost Basis 1) when you transfer in a B or C share of a mutual fund and you sell the fund at Jones you do not have to reciprocate the CDSC back to the surrendering firm. Yes I have seen this done. 2) by not knowing the cost basis on a fund you don’t have to report it on the 1099 when sold, and you can play stupid at capital gain time. Mr. Eaker comes from a CPA background, and I’m sure the cost basis issue is beyond his control.

“Play stupid at capital gains time”???



Well, every time you think you’ve heard it all…

[quote=advisor1]There are several reasons why Jones does not belong to Cost Basis 1) when you transfer in a B or C share of a mutual fund and you sell the fund at Jones you do not have to reciprocate the CDSC back to the surrendering firm. Yes I have seen this done. 2) by not knowing the cost basis on a fund you don't have to report it on the 1099 when sold, and you can play stupid at capital gain time. Mr. Eaker comes from a CPA background, and I'm sure the cost basis issue is beyond his control. [/quote]

Are you stating this as fact because you have intimate knowledge of the inner workings of EDJ and the GP level decisions that are made?  Or are you just spouting off? 

[quote=advisor1]There are several reasons why Jones does not belong to Cost Basis 1) when you transfer in a B or C share of a mutual fund and you sell the fund at Jones you do not have to reciprocate the CDSC back to the surrendering firm. Yes I have seen this done. 2) by not knowing the cost basis on a fund you don’t have to report it on the 1099 when sold, and you can play stupid at capital gain time. Mr. Eaker comes from a CPA background, and I’m sure the cost basis issue is beyond his control. [/quote]

Hey Mr. Know it All…NOBODY reports cost basis on their 1099’s because the IRS doesn’t require it.  No financial institution is going to voluntarily report more of their client’s information on a 1099 than the IRS requires.

Space-

You are clueless. The GP's would incur a cost that they would have to pay or perhaps pass on to the only profit center. Or have you forgotten. By the way. what is s the bill when your T-1 is working? The same as the old technology. I am estimating the real cost is 20-25% of the satellite technology.

How does that wash with the greatest salesforce in the world? You are being manipulated always as an employee at Jones.

yes I know for a fact about the CDSC

[quote=footsoldier]

Space-

You are clueless. The GP's would incur a cost that they would have to pay or perhaps pass on to the only profit center. Or have you forgotten. By the way. what is s the bill when your T-1 is working? The same as the old technology. I am estimating the real cost is 20-25% of the satellite technology.

How does that wash with the greatest salesforce in the world? You are being manipulated always as an employee at Jones.

[/quote]

How did we go from talking about cost basis to asking about the cost on my T-1 line?  Anyway that was a great question and I'm glad you asked.  Since I just got my T-1 line today I haven't seen the impact on my P&L.  I did take the time to find the answer to your question though.  (That's A++ service in case you didnt' recognize it) According to a Suggbox wire from early Dec the P&L isn't going to change.  The answer they gave is that there is more to that line item than just the satellite.  It includes "the workstations, printers, and other hardware; software; phone equipment; and the associated maintenance and support costs."  They also said that this is the largest, most expensive undertaking ever taken on at Jones as far as technology goes and they are trying to not raise the P&L line item to compensate. 

By the way, I'm not clueless, just blissfully unaware.

They also said that this is the largest, most expensive undertaking ever taken on at Jones as far as technology goes and they are trying to not raise the P&L line item to compensate. 

Wow, another Jones rocket scientist.  The best case scenario you can paint here is that they were grossly overcharging you before.

SS-

By the way, I'm not clueless, just blissfully unaware.

Keep chugging it dude. When you choke on it, you will see the light. BTW... Dec was my best month ever in the biz. I had better gross days at Jones, but nothing close on the net to me side (you know Mr. Blissful, what you can spend on Kool-Aid)!!

The gross overcharging previously or the magnaminous gesture to hold
the line on the P&L is certainly not yet again another example of
edj doublespeak. So you edj bashers take it easy on the kool aid
chuggers.

And you chuggers - ignore the man behind the curtain -.

We cannot allow GP allocations to suffer and we cannot allow $24
million to not go to the top 6 guys in bonuses (one of whom is the head
of “technology”).