Let’s call a spade a spade. EJ “Preferred Fund Partners” are nothing more than a kickback scheme that pays the ELT and GP’s handsomely while passing along the bloated expenses and fees to EJ clients.
The firm collected over $315 million alone in 2024. Edward Jones has no problem playing games with the Paychex of the Frontline employees, I think it’s time that the front line employees report what they’ve seen to authorities when it comes to wholesalers misbehaving. If you’ve seen something, please take action and report this to the SEC and FINRA. Don’t hold your breath, waiting for FINRA accountability though, you may need to go to multiple authorities since Penny Pennington is on the board of directors for FINRA (and the Federal Reserve to - no conflict of interest's 🤣).
Wholesalers wine and dine broker-dealer reps at resorts, games, and concerts—labeling it “training.” Meanwhile, American Funds (Edward Jones’ preferred partner) paid a whopping $109 million in revenue-sharing to Edward Jones in 2023 alone—just one firm among many lining their pockets. Edward Jones as a whole raked in $315 million in revenue-sharing fees from asset managers in 2024.
A customer’s TripAdvisor review lays it out: wholesaler reps getting Edward Jones employees drunk in luxury resorts, all under the guise of education:
👉 https://www.tripadvisor.com/ShowUserReviews-g147278-d150663-r931288826-Curacao_Marriott_Beach_Resort-Willemstad_Curacao.html
If you’re a broker-dealer employee and this rings a bell—don’t stay silent. Protect your clients, your firm’s integrity—and your conscience.
Report to external regulators now:
• FINRA Whistleblower: whistleblower@finra.org | (866) 96-FINRA
• SEC Whistleblower: sec.gov/whistleblower | whistleblower@sec.gov | (202) 551-4790
💰 Every dollar funneled from wholesalers to perks is a dollar not going toward clients. Speak up. Let’s make them pay—for accountability.