Posted On: April 23, 2013

New Hampshire Regulators Accuse Edward Jones of “Questionable Marketing” to Recruit Customers

The New Hampshire Bureau of Securities Regulation says Edward Jones & Co. employed “questionable marketing” to bring in customers. Seeking up to $3 million, the brokerage firm is accused of making 20,000 calls to residents that were on NH’s National Do Not Call Registry.

According to regulators, no other broker-dealer has been named in as many complaints about unsolicited phone calls. A spokesperson for Edward Jones, however, disputes this contention.

With over 12,000 financial advisers and approximately 11,400 offices throughout the US—mostly there is just one broker per locale—the brokerage firm tries to work around telemarketing rules by getting brokers to go door-to-door. Training materials talk about how when a potential customer asks to be added to the do-not call list, the broker is supposed to respond by saying he/she respects the former’s decision but that another visit may be likely if something that could be of possible interest to the prospective client arises.

The Federal Trade Commission established the do-not-call list so that consumers could stop getting telemarketing calls at home. 1.1 million of NH’s 1.3 million residents are on the list. (That state already has fined Spartan Capital Securities LLC over unsolicited calls.)

To get on the registry, go to donotcall.gov. You can also call, toll-free (888)-382-1222.
Your name stays on the list for five years so remember to register again at that time.

However, you should know that this registry doesn’t block all telemarketing calls. Per FINRA rules, if you have an established business relationship with a financial firm, that company can call you. A securities representative can also call you if you contacted his/her firm to inquire about a service or product.

If you do get cold calls soliciting investments, watch out for:

• High-pressure sales tactics
• Once-in-a-lifetime pitches
• Unsupervised and unregistered brokers
• The absence of any written information

If you suspect that you might be the victim of securities fraud, contact our FINRA arbitration law firm today.

Edward Jones Accused of Making ‘Questionable’ Sales Calls, Bloomberg Businessweek, April 11, 2013

National Do Not Call Registry


More Blog Posts:

Edward Jones and Merrill Lynch Brokers Like Where They Work, While UBS Representatives are the Least Happy, Stockbroker Fraud Blog, December 11, 2009

The 11th Circuit Revives SEC Fraud Lawsuit Against Morgan Keegan Over Auction-Rate Securities, Institutional Investor Securities Blog, May 8, 2012