Probe yields settlement from investment firm

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South Carolina will receive more than $300,000 as a party to a settlement with Edward D. Jones & Co., the state’s Justice Department announced Tuesday.

The money is part of a $17 million payout the investment firm made after a four-year investigation by state securities regulators into how Edward Jones handled transitions from brokerage to advisory accounts. Clients were charged front-loaded commissions on some mutual funds when the investments were sold sooner than expected.

The investigation came about under a 2016 rule adopted by the U.S. Department of Labor that requires investment advice for retirement accounts be subject to a fiduciary standard of care.

“As part of the settlement, Edward Jones will pay each of the 50 states, Washington, D.C., the U.S. Virgin Islands, and Puerto Rico an administrative fine of approximately $320,000,” a Justice Department news release says. “In evaluating the supervisory failures and determining the appropriate resolution, the states considered certain facts such as the positive performance of the investment advisory accounts as compared to the brokerage accounts.”

Said state Attorney General Alan Wilson, “In partnership with [the North American Securities Administrators Association] and other state securities regulators, we will continue to protect Main Street investors and ensure that companies operating in South Carolina follow our securities laws.”

To submit a complaint on investment matters through the department’s Securities Division, residents can visit the website at https://www.scag.gov/inside-the-office/legal-services-division/securities/.