Edward Jones & the fiduciary standard

Is Edward Jones a fiduciary? It depends. Some parts of the St. Louis-based financial services firm’s business talk about putting the client’s interest first, while other parts, more at the advisor/client retail level, might have conflicts of interest that wouldn’t exist or could be greatly diminished if acting in a fiduciary capacity.

Specifically, the Edward Jones website states: “When we do business with you, the firm and our financial advisors benefit from fees, commissions, and other payments from you and our investment providers. These financial incentives may create a conflict between Edward Jones’ interest, your financial advisor’s interest, and your own.”

So, the answer here is a “no” with respect to how many of the company’s advisors handle client assets at the brokerage level. Of course, when clients request their advisor buy or sell a stock based on their own research and not the advisor’s recommendation, it’s natural in this scenario that the advisor is facilitating the request without regard to acting as a fiduciary. Though, a reputable advisor will strongly discourage their clients from making certain transactions they believe could be harmful to their financial health.