The Financial Industry Regulatory Authority fined Edward Jones $725,000 over its failure to set up, keep and enforce a supervisory system of consolidated reports from 2010 to 2014—when its roughly 16,000 advisors created and shared about 52 million client reports.
Outside asset information was included in the report, but Edward Jones "had no system or written procedures in place reasonably designed to minimize the risk that the reports could contain inaccurate information that potentially could be missed used," according to the disciplinary action, which was finalized on Thursday.
Over the four-year period, FINRA says, the reports contain disclosures stating "the reports are not account statements and should not be relied upon as account statements," the reports were "created as a courtesy and … may include information about assets that are not held at or may not have been verified by Edward Jones."
According to an Edward Jones spokesperson, "We're pleased this matter has been resolved."
