Jones Netted $82.4M From Revenue Sharing in 2004
January 24, 2005
Edward D. Jones has revealed that revenue-sharing generated $82.4 million for the firm last year. The Securities and Exchange Commission acknowledges that revenue-sharing fees are legal but says the practice should be disclosed to customers.
Edward Jones posted revenue-sharing gains on its Web site earlier this month to meet guidelines hammered out in a recent $75 million federal settlement stemming from charges that the firm improperly steered clients toward a handful of mutual funds that participated in a revenue sharing program.
Approximately seven mutual fund families - American Funds, Putnam Investments, Lord, Abbett, Goldman Sachs, The Hartford, Van Kampen Investments and Federated Investors - collectively paid more than $67.6 million to participate in Edward Jones' revenue-sharing program.
The $75 million settlement has been earmarked for investors.