Multiple gavels The plaintiffs allege Edward Jones used the Labor Department’s fiduciary rule as cover to transition existing clients to advisory accounts that generate more revenue for the firm.

A class action lawsuit filed in a California federal court against Edward Jones alleges the broker-dealer profited from a firm-wide scheme that moved investors of modest means from commission-based brokerage accounts to more expensive fee-based fiduciary accounts.

The firm began a concerted effort of moving brokerage clients to fee-based accounts, which charge an annual fee based on account assets, in 2008, says the complaint, which names Edward Jones’ holding company, two affiliates, and several executives as co-defendants.

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Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.

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