Edward D. Jones pays $1.5 million in Missouri settlement

Missouri Commissioner of Securities David B. Cosgrove approved a consent order with the firm to resolve the allegation that the company did not disclose information about its revenue sharing.

Edward D. Jones, which has more than 100 representatives in Missouri, was found to have revenue-sharing arrangements with seven mutual fund families. The fund families agreed to pay the firm for recommending their funds – incentives the firm failed to report to its investors.

“Missouri investors deserve to get investment advice based on what is best for them, not what is financially beneficial to their broker,” said Missouri Secretary of State Robin Carnahan in a news release.

The agreement forces the firm to post its revenue-sharing incentives on its Web site.

This is not the first time Edward D. Jones has failed to keep its investors informed. In 2004, the firm paid the Securities and Exchange Commission, the National Association of Securities Dealers and the New York Stock Exchange $75 million after failing to disclose its revenue-sharing agreements.