CFA confidentiality

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scsu74
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CFA confidentiality

Post by scsu74 »

Is there any kind of advisor/client confidentiality for CFAs? Recently, my EJ advisor talked about our financial plans with someone in our family that is not named on our account.

I believe he did this to secure commissions from money the family member is intending to give to us.

After our advisor notified them, they called us and told us if we move any money (was talking with the advisor about selling 50% of our holdings and moving them to vanguard) they will no longer put money in the account.

This seems really shady/unethical to me, but thought I'd ask here. Thanks in advance and apologies if this is in the wrong sub-forum.
123
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Re: CFA confidentiality

Post by 123 »

The CFA Standards of Professional Conduct include: https://www.cfainstitute.org/en/researc ... dentiality
"Members and Candidates must keep information about current, former, and prospective clients confidential unless:
The information concerns illegal activities on the part of the client or prospective client,
Disclosure is required by law, or
The client or prospective client permits disclosure of the information."

It is probably an indicator of poor employee training at Edward Jones as well. If it happened to me I would move my accounts from the offending firm.
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Topic Author
scsu74
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Re: CFA confidentiality

Post by scsu74 »

123 wrote: Mon Dec 30, 2019 2:05 am The CFA Standards of Professional Conduct include: https://www.cfainstitute.org/en/researc ... dentiality
"Members and Candidates must keep information about current, former, and prospective clients confidential unless:
The information concerns illegal activities on the part of the client or prospective client,
Disclosure is required by law, or
The client or prospective client permits disclosure of the information."

It is probably an indicator of poor employee training at Edward Jones as well. If it happened to me I would move my accounts from the offending firm.
Thought they would have something like that. Any idea how serious of a violation that would be or possible punishment? Debating filing a formal complaint
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nedsaid
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Re: CFA confidentiality

Post by nedsaid »

scsu74 wrote: Mon Dec 30, 2019 3:09 am
123 wrote: Mon Dec 30, 2019 2:05 am The CFA Standards of Professional Conduct include: https://www.cfainstitute.org/en/researc ... dentiality
"Members and Candidates must keep information about current, former, and prospective clients confidential unless:
The information concerns illegal activities on the part of the client or prospective client,
Disclosure is required by law, or
The client or prospective client permits disclosure of the information."

It is probably an indicator of poor employee training at Edward Jones as well. If it happened to me I would move my accounts from the offending firm.
Thought they would have something like that. Any idea how serious of a violation that would be or possible punishment? Debating filing a formal complaint
I think I would have a very serious talk with the Financial Advisor's manager. This does seem like a serious breach of trust to me. Depending upon what I heard back, I would consider filing a formal complaint. I would also strongly consider moving my money to another firm.
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vtjon02
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Re: CFA confidentiality

Post by vtjon02 »

scsu74 wrote: Mon Dec 30, 2019 3:09 am
123 wrote: Mon Dec 30, 2019 2:05 am The CFA Standards of Professional Conduct include: https://www.cfainstitute.org/en/researc ... dentiality
"Members and Candidates must keep information about current, former, and prospective clients confidential unless:
The information concerns illegal activities on the part of the client or prospective client,
Disclosure is required by law, or
The client or prospective client permits disclosure of the information."

It is probably an indicator of poor employee training at Edward Jones as well. If it happened to me I would move my accounts from the offending firm.
Thought they would have something like that. Any idea how serious of a violation that would be or possible punishment? Debating filing a formal complaint
It is a very serious violation. Are you sure your Edward Jones financial advisor is a CFA?
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BL
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Re: CFA confidentiality

Post by BL »

Never discuss moving funds away from "advisor"! You have just run into a bad result, but others have had uncomfortable results from doing this. If moving, maybe email them after it is a done deal with the receiving brokerage. Let the receiving brokerage handle the details, as they have the incentive to complete the process.
Mr. Rumples
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Re: CFA confidentiality

Post by Mr. Rumples »

You might need to pinpoint the date and time of the event if you formally report this event. But it appears to be a violation of their policy and perhaps statute:

https://www.edwardjones.com/images/privacy-notice.pdf
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RickBoglehead
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Re: CFA confidentiality

Post by RickBoglehead »

Why is someone else putting money in your account?
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Re: CFA confidentiality

Post by livesoft »

RickBoglehead wrote: Mon Dec 30, 2019 6:41 am Why is someone else putting money in your account?
I can easily see how this might happen. Here is a hypothetical:
Father-in-law is good friends with the EJ advisor and has his money there. He gives his adult child and grandchildren money every year. It could go into 529 plans or other accounts.

It is also possible that the OP is using EJ because family member suggested to them years ago that it was the place to be. EJ needs family referrals to improve its profits. Moving money from EJ by the OP would be a repudiation of the family member's intelligence.
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student
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Re: CFA confidentiality

Post by student »

I normally do not like to create confrontation but this is unacceptable. I would file a compliant and move the account.
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Stinky
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Re: CFA confidentiality

Post by Stinky »

Whether the advisor salesperson was a CFA is irrelevant. This type of behavior is simply unethical.

Make your complaints. Move the money. Don’t look back.
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Re: CFA confidentiality

Post by LadyGeek »

The wiki has some background info: Financial planner (Background checks)

If this person was a CFA (Chartered Financial Analyst), you can file a complaint. First, check if he's a member: Member Directory

Then, Report Misconduct By a Member or Candidate.

===============
You should also contact Edward Jones directly. Tell them you want to report a compliance violation regarding your advisor. That will get their attention. It's a breach of conduct and an ethical concern. Don't get pushed off, you want to speak directly with someone in the compliance department.

Don't complain about your investments, as I suspect they get that all the time.

(I haven't done this myself, but this is the path I took many years ago when I was with Ameriprise. I never followed through, though.)
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Re: CFA confidentiality

Post by HomeStretch »

Stinky wrote: Mon Dec 30, 2019 8:01 am Whether the advisor salesperson was a CFA is irrelevant. This type of behavior is simply unethical.

Make your complaints. Move the money. Don’t look back.
+1.

Don’t let relative’s decision not to gift you money if you move your account sway you from moving it. Perhaps the EJ sales rep made negative comments to your relative about your plan to move the money in order to influence the gift giver into telling you not to move the account.
deltaneutral83
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Re: CFA confidentiality

Post by deltaneutral83 »

Potential situation where relative refers business to EJ agent and vice versa, probably is a business arrangement and OP is just going to have to stomach it now that the cat is out of the bag. Relative probably isn't interested in OP following up to file a complaint on EJ agent??? All speculation I guess.
Last edited by deltaneutral83 on Mon Dec 30, 2019 9:55 am, edited 2 times in total.
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hornet96
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Re: CFA confidentiality

Post by hornet96 »

vtjon02 wrote: Mon Dec 30, 2019 4:18 am
It is a very serious violation. Are you sure your Edward Jones financial advisor is a CFA?
I was thinking the same thing. Just because they say they are a “financial advisor” and tout some kind of certification, doesn’t mean they are a CFA Charterholder. Personally I’d be fairly shocked to learn that there were any fellow Charterholders working at a place like EJ, unless he had committed numerous ethical violations in his past and this was the only place that would hire him.
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Re: CFA confidentiality

Post by whodidntante »

While in some circumstances I would accept a gift, I would not accept it on terms that the person meddles in my finances. It sounds like you are dodging two bullets by moving to Vanguard.
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Re: CFA confidentiality

Post by whodidntante »

hornet96 wrote: Mon Dec 30, 2019 9:32 am
vtjon02 wrote: Mon Dec 30, 2019 4:18 am
It is a very serious violation. Are you sure your Edward Jones financial advisor is a CFA?
I was thinking the same thing. Just because they say they are a “financial advisor” and tout some kind of certification, doesn’t mean they are a CFA Charterholder. Personally I’d be fairly shocked to learn that there were any fellow Charterholders working at a place like EJ, unless he had committed numerous ethical violations in his past and this was the only place that would hire him.
I always assumed that EJ salespeople had bought a job. Maybe it's the low rent strip mall office space that makes me think that.
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Re: CFA confidentiality

Post by J295 »

If your family member wants to condition the gift (regardless of whether you think the conditions are reasonable) either comply with the conditions , have the conditions waived, or don’t accept the gift.
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patrick013
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Re: CFA confidentiality

Post by patrick013 »

Any licensed advisor cannot discuss or disclose client information with a third party.

You could file a complaint with the state administrator or the SEC if he is federally registered. Maybe warn him the first time, who knows.
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afan
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Re: CFA confidentiality

Post by afan »

Certainly worth filing a complaint. If nothing else it may keep him from doing it again. As it stands, if you don't pursue it, he has nothing to lose by continuing this behavior. You are taking your money out anyway. If he can force you to keep some of it at EJ for a while longer, with no repercussions, then it is a win for him.

Depending on the relationship with your family member, you may explain that it was exactly this sort of dishonest conduct that lead you to conclude you had to look elsewhere. That information will probably make its way back to the salesperson. That, along with the complaints to EJ and FINRA, should get him to back off.

Apparently EJ does have CFAs handling retail clients. If your advisor is really a CFA, yet another place to lodge a complaint.
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fposte
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Re: CFA confidentiality

Post by fposte »

J295 wrote: Mon Dec 30, 2019 9:49 am If your family member wants to condition the gift (regardless of whether you think the conditions are reasonable) either comply with the conditions , have the conditions waived, or don’t accept the gift.
Yes, I think that's the heart of the problem here. I understand the desire to have it both ways, but ultimately it doesn't work.
Topic Author
scsu74
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Re: CFA confidentiality

Post by scsu74 »

vtjon02 wrote: Mon Dec 30, 2019 4:18 am
scsu74 wrote: Mon Dec 30, 2019 3:09 am
123 wrote: Mon Dec 30, 2019 2:05 am The CFA Standards of Professional Conduct include: https://www.cfainstitute.org/en/researc ... dentiality
"Members and Candidates must keep information about current, former, and prospective clients confidential unless:
The information concerns illegal activities on the part of the client or prospective client,
Disclosure is required by law, or
The client or prospective client permits disclosure of the information."

It is probably an indicator of poor employee training at Edward Jones as well. If it happened to me I would move my accounts from the offending firm.
Thought they would have something like that. Any idea how serious of a violation that would be or possible punishment? Debating filing a formal complaint
It is a very serious violation. Are you sure your Edward Jones financial advisor is a CFA?
Shoot, just double checked and it's CFP next to his name. Are they the same or different?
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scsu74
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Re: CFA confidentiality

Post by scsu74 »

livesoft wrote: Mon Dec 30, 2019 7:04 am
RickBoglehead wrote: Mon Dec 30, 2019 6:41 am Why is someone else putting money in your account?
I can easily see how this might happen. Here is a hypothetical:
Father-in-law is good friends with the EJ advisor and has his money there. He gives his adult child and grandchildren money every year. It could go into 529 plans or other accounts.

It is also possible that the OP is using EJ because family member suggested to them years ago that it was the place to be. EJ needs family referrals to improve its profits. Moving money from EJ by the OP would be a repudiation of the family member's intelligence.
It's what the grandmother prefers, she's had an account with him for 30ish years. She opened an account for both her kids and all three grandchildren (one is my wife).

She makes regular deposits in all accounts, we don't contribute.
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scsu74
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Re: CFA confidentiality

Post by scsu74 »

J295 wrote: Mon Dec 30, 2019 9:49 am If your family member wants to condition the gift (regardless of whether you think the conditions are reasonable) either comply with the conditions , have the conditions waived, or don’t accept the gift.
We weren't aware of the conditions until this all happened. Didn't think it would be a big deal as long as the money was staying invested and not used for whatever else.
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Re: CFA confidentiality

Post by an_asker »

HomeStretch wrote: Mon Dec 30, 2019 8:41 am
Stinky wrote: Mon Dec 30, 2019 8:01 am Whether the advisor salesperson was a CFA is irrelevant. This type of behavior is simply unethical.

Make your complaints. Move the money. Don’t look back.
+1.

Don’t let relative’s decision not to gift you money if you move your account sway you from moving it. Perhaps the EJ sales rep made negative comments to your relative about your plan to move the money in order to influence the gift giver into telling you not to move the account.
OP:

If I were in your position, I would move ALL of the money from EJ yesterday!!
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Re: CFA confidentiality

Post by an_asker »

livesoft wrote: Mon Dec 30, 2019 7:04 am
RickBoglehead wrote: Mon Dec 30, 2019 6:41 am Why is someone else putting money in your account?
I can easily see how this might happen. Here is a hypothetical:
Father-in-law is good friends with the EJ advisor and has his money there. He gives his adult child and grandchildren money every year. It could go into 529 plans or other accounts.

It is also possible that the OP is using EJ because family member suggested to them years ago that it was the place to be. EJ needs family referrals to improve its profits. Moving money from EJ by the OP would be a repudiation of the family member's intelligence.
This is worse than a ESPP provision that locks you and your investment in for an extended period of time before you can transfer it or sell it or both! :oops:
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Re: CFA confidentiality

Post by livesoft »

I would still talk to Compliance and even the CFP board. In some sense the gift of money appears to have come with some illegal attachments that make it not a real gift.

I would also make it clear that the salesrep (they are not acting as a CFP) does not inform the family member that they have been reported for non-compliance.

Note that I did not say you should move the money. Leave Grandma guessing.
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Re: CFA confidentiality

Post by J295 »

scsu74 wrote: Mon Dec 30, 2019 2:41 pm
J295 wrote: Mon Dec 30, 2019 9:49 am If your family member wants to condition the gift (regardless of whether you think the conditions are reasonable) either comply with the conditions , have the conditions waived, or don’t accept the gift.
We weren't aware of the conditions until this all happened. Didn't think it would be a big deal as long as the money was staying invested and not used for whatever else.
OK, now you know. In my view, you have the same options. Comply with the conditions, ask the conditions to be lifted, or return the money.

For all the posters who get all worked up about Edward Jones (and perhaps rightfully so, but I can’t comment on that because I don’t have direct experience), I think they lose sight of what’s happening here. It’s your spouse’s grandma. It’s a gift. Graciously accept it, or graciously return it. If you keep it, you get $X and family harmony, although $X may be less than you would’ve obtain if you place the money at Vanguard.

You can take another route, move the money and create problems for the representative that grandma recommends, thereby joining the many families that have disharmony centered around money and perhaps obtain a better return from a gift.

Personally, I tend not to go looking for trouble especially over a gift.
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goingup
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Re: CFA confidentiality

Post by goingup »

scsu74 wrote: Mon Dec 30, 2019 2:41 pm
J295 wrote: Mon Dec 30, 2019 9:49 am If your family member wants to condition the gift (regardless of whether you think the conditions are reasonable) either comply with the conditions , have the conditions waived, or don’t accept the gift.
We weren't aware of the conditions until this all happened. Didn't think it would be a big deal as long as the money was staying invested and not used for whatever else.
Gee, suppose you wanted to use some of the money? Do you have to ask Grandma's permission? Will the EJ rep report to her any withdrawal made to YOUR ACCOUNT? This is quite an odd arrangement.

Regardless, it seems if you want the contributions to continue you'll have to comply with her wishes. If you report the CFP it will surely get back to Grandma. That won't be a good outcome for you I'm afraid.

So, I'd graciously accept the gift and the conditions.
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Re: CFA confidentiality

Post by alex_686 »

CFA, CFP is the wrong question. These are just credentials- and optional ones at that.

There are rules on the book. Strong rules. Talk to the branch manager or with EJ home office. FINRA is a stronger answer. The police is the strongest. This is highly unethical and illegal. Period. The advisor needs to be slapped down hard.

I would then go to grandma - with statements- and ask her what she is trying to do. Be as open and friendly as possible. Don’t even suggest moving the accounts. Open up quality lines if communication. Grandma’s heart is in the right place, even if she is controlling and her specific actions are questionable.
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scsu74
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Re: CFA confidentiality

Post by scsu74 »

J295 wrote: Mon Dec 30, 2019 3:18 pm
scsu74 wrote: Mon Dec 30, 2019 2:41 pm
J295 wrote: Mon Dec 30, 2019 9:49 am If your family member wants to condition the gift (regardless of whether you think the conditions are reasonable) either comply with the conditions , have the conditions waived, or don’t accept the gift.
We weren't aware of the conditions until this all happened. Didn't think it would be a big deal as long as the money was staying invested and not used for whatever else.
OK, now you know. In my view, you have the same options. Comply with the conditions, ask the conditions to be lifted, or return the money.

For all the posters who get all worked up about Edward Jones (and perhaps rightfully so, but I can’t comment on that because I don’t have direct experience), I think they lose sight of what’s happening here. It’s your spouse’s grandma. It’s a gift. Graciously accept it, or graciously return it. If you keep it, you get $X and family harmony, although $X may be less than you would’ve obtain if you place the money at Vanguard.

You can take another route, move the money and create problems for the representative that grandma recommends, thereby joining the many families that have disharmony centered around money and perhaps obtain a better return from a gift.

Personally, I tend not to go looking for trouble especially over a gift.
We are in agreement and that's the path we chose. The primary goal was to get out of the American Funds we were in and away from the high front load/high ERs associated.

That's what got this whole ball rolling.

Now we know her views and intention with the gift so we are going to honor her intent and keep the money at EJ for the time being.

We converted over half to vanguard ETFs and look at it like 2% isn't worth causing family issues over. The goal is to convert the rest eventually as capital gains are reduced so the entirety is ready to go to vanguard when possible.

Thank you all for the feedback, wanted to make sure I wasn't out of line in thinking this was unethical. Also, it's good to know what standards he's supposed to be following.
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Re: CFA confidentiality

Post by Dottie57 »

RickBoglehead wrote: Mon Dec 30, 2019 6:41 am Why is someone else putting money in your account?
Backstory from another thread.

viewtopic.php?f=1&t=298652#p4916964
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Re: CFA confidentiality

Post by Dottie57 »

J295 wrote: Mon Dec 30, 2019 9:49 am If your family member wants to condition the gift (regardless of whether you think the conditions are reasonable) either comply with the conditions , have the conditions waived, or don’t accept the gift.
+1
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Re: CFA confidentiality

Post by an_asker »

J295 wrote: Mon Dec 30, 2019 3:18 pm
scsu74 wrote: Mon Dec 30, 2019 2:41 pm
J295 wrote: Mon Dec 30, 2019 9:49 am If your family member wants to condition the gift (regardless of whether you think the conditions are reasonable) either comply with the conditions , have the conditions waived, or don’t accept the gift.
We weren't aware of the conditions until this all happened. Didn't think it would be a big deal as long as the money was staying invested and not used for whatever else.
OK, now you know. In my view, you have the same options. Comply with the conditions, ask the conditions to be lifted, or return the money.

For all the posters who get all worked up about Edward Jones (and perhaps rightfully so, but I can’t comment on that because I don’t have direct experience), I think they lose sight of what’s happening here. It’s your spouse’s grandma. It’s a gift. Graciously accept it, or graciously return it. If you keep it, you get $X and family harmony, although $X may be less than you would’ve obtain if you place the money at Vanguard.

You can take another route, move the money and create problems for the representative that grandma recommends, thereby joining the many families that have disharmony centered around money and perhaps obtain a better return from a gift.

Personally, I tend not to go looking for trouble especially over a gift.
I agree! This new information sorta contradicts the OP (quote below):
Is there any kind of advisor/client confidentiality for CFAs? Recently, my EJ advisor talked about our financial plans with someone in our family that is not named on our account.
Though it is technically OP's account, it appears that all contributions were made by grandma. With that in mind, I think it behooves OP to first find out what exactly grandma wants; if OP was already aware that that is what grandma wanted and still attempted to move the money away without telling her (though it was a gift and the giver really ought not set conditions, but grandma is grandma), then OP ought not be complaining about EJ.
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Re: CFA confidentiality

Post by Dottie57 »

an_asker wrote: Mon Dec 30, 2019 3:58 pm
J295 wrote: Mon Dec 30, 2019 3:18 pm
scsu74 wrote: Mon Dec 30, 2019 2:41 pm
J295 wrote: Mon Dec 30, 2019 9:49 am If your family member wants to condition the gift (regardless of whether you think the conditions are reasonable) either comply with the conditions , have the conditions waived, or don’t accept the gift.
We weren't aware of the conditions until this all happened. Didn't think it would be a big deal as long as the money was staying invested and not used for whatever else.
OK, now you know. In my view, you have the same options. Comply with the conditions, ask the conditions to be lifted, or return the money.

For all the posters who get all worked up about Edward Jones (and perhaps rightfully so, but I can’t comment on that because I don’t have direct experience), I think they lose sight of what’s happening here. It’s your spouse’s grandma. It’s a gift. Graciously accept it, or graciously return it. If you keep it, you get $X and family harmony, although $X may be less than you would’ve obtain if you place the money at Vanguard.

You can take another route, move the money and create problems for the representative that grandma recommends, thereby joining the many families that have disharmony centered around money and perhaps obtain a better return from a gift.

Personally, I tend not to go looking for trouble especially over a gift.
I agree! This new information sorta contradicts the OP (quote below):
Is there any kind of advisor/client confidentiality for CFAs? Recently, my EJ advisor talked about our financial plans with someone in our family that is not named on our account.
Though it is technically OP's account, it appears that all contributions were made by grandma. With that in mind, I think it behooves OP to first find out what exactly grandma wants; if OP was already aware that that is what grandma wanted and still attempted to move the money away without telling her (though it was a gift and the giver really ought not set conditions, but grandma is grandma), then OP ought not be complaining about EJ.
I think this is Op’s wife’s account. Any conversations therefore should be between wife and grandma.

See backstory a couple posts above. I am not sure OP is legally authorized to talk to EJ about the account.
Last edited by Dottie57 on Mon Dec 30, 2019 4:07 pm, edited 1 time in total.
Afty
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Re: CFA confidentiality

Post by Afty »

Why does grandma care where you hold the investments? I wonder if she has been told that you are selling everything and are going to blow it all.
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Re: CFA confidentiality

Post by an_asker »

Dottie57 wrote: Mon Dec 30, 2019 4:02 pm
an_asker wrote: Mon Dec 30, 2019 3:58 pm
J295 wrote: Mon Dec 30, 2019 3:18 pm
scsu74 wrote: Mon Dec 30, 2019 2:41 pm
J295 wrote: Mon Dec 30, 2019 9:49 am If your family member wants to condition the gift (regardless of whether you think the conditions are reasonable) either comply with the conditions , have the conditions waived, or don’t accept the gift.
We weren't aware of the conditions until this all happened. Didn't think it would be a big deal as long as the money was staying invested and not used for whatever else.
OK, now you know. In my view, you have the same options. Comply with the conditions, ask the conditions to be lifted, or return the money.

For all the posters who get all worked up about Edward Jones (and perhaps rightfully so, but I can’t comment on that because I don’t have direct experience), I think they lose sight of what’s happening here. It’s your spouse’s grandma. It’s a gift. Graciously accept it, or graciously return it. If you keep it, you get $X and family harmony, although $X may be less than you would’ve obtain if you place the money at Vanguard.

You can take another route, move the money and create problems for the representative that grandma recommends, thereby joining the many families that have disharmony centered around money and perhaps obtain a better return from a gift.

Personally, I tend not to go looking for trouble especially over a gift.
I agree! This new information sorta contradicts the OP (quote below):
Is there any kind of advisor/client confidentiality for CFAs? Recently, my EJ advisor talked about our financial plans with someone in our family that is not named on our account.
Though it is technically OP's account, it appears that all contributions were made by grandma. With that in mind, I think it behooves OP to first find out what exactly grandma wants; if OP was already aware that that is what grandma wanted and still attempted to move the money away without telling her (though it was a gift and the giver really ought not set conditions, but grandma is grandma), then OP ought not be complaining about EJ.
I think this is Op’s wife’s account. Any conversations therefore should be between wife and grandma.

See backstory a couple posts above. I am not sure OP is legally authorized to talk to EJ about the account.
Agree!!
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hornet96
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Re: CFA confidentiality

Post by hornet96 »

scsu74 wrote: Mon Dec 30, 2019 2:36 pm
Shoot, just double checked and it's CFP next to his name. Are they the same or different?
They aren’t even remotely similar credentials. CFP is MUCH easier to obtain; however, they are still bound by certain rules on ethics. With that said, you should focus on the advice others have given with regard to the relationship aspects with grandma in law, etc.
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scsu74
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Re: CFA confidentiality

Post by scsu74 »

goingup wrote: Mon Dec 30, 2019 3:19 pm
scsu74 wrote: Mon Dec 30, 2019 2:41 pm
J295 wrote: Mon Dec 30, 2019 9:49 am If your family member wants to condition the gift (regardless of whether you think the conditions are reasonable) either comply with the conditions , have the conditions waived, or don’t accept the gift.
We weren't aware of the conditions until this all happened. Didn't think it would be a big deal as long as the money was staying invested and not used for whatever else.
Gee, suppose you wanted to use some of the money? Do you have to ask Grandma's permission? Will the EJ rep report to her any withdrawal made to YOUR ACCOUNT? This is quite an odd arrangement.

Regardless, it seems if you want the contributions to continue you'll have to comply with her wishes. If you report the CFP it will surely get back to Grandma. That won't be a good outcome for you I'm afraid.

So, I'd graciously accept the gift and the conditions.
We can withdraw, just not invest anywhere with her money. I don't really understand, but whatever. It's less than half of our total investments. Just bugs me losing money to fees when it's unnecessary.
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scsu74
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Re: CFA confidentiality

Post by scsu74 »

an_asker wrote: Mon Dec 30, 2019 3:58 pm
J295 wrote: Mon Dec 30, 2019 3:18 pm
scsu74 wrote: Mon Dec 30, 2019 2:41 pm
J295 wrote: Mon Dec 30, 2019 9:49 am If your family member wants to condition the gift (regardless of whether you think the conditions are reasonable) either comply with the conditions , have the conditions waived, or don’t accept the gift.
We weren't aware of the conditions until this all happened. Didn't think it would be a big deal as long as the money was staying invested and not used for whatever else.
OK, now you know. In my view, you have the same options. Comply with the conditions, ask the conditions to be lifted, or return the money.

For all the posters who get all worked up about Edward Jones (and perhaps rightfully so, but I can’t comment on that because I don’t have direct experience), I think they lose sight of what’s happening here. It’s your spouse’s grandma. It’s a gift. Graciously accept it, or graciously return it. If you keep it, you get $X and family harmony, although $X may be less than you would’ve obtain if you place the money at Vanguard.

You can take another route, move the money and create problems for the representative that grandma recommends, thereby joining the many families that have disharmony centered around money and perhaps obtain a better return from a gift.

Personally, I tend not to go looking for trouble especially over a gift.
I agree! This new information sorta contradicts the OP (quote below):
Is there any kind of advisor/client confidentiality for CFAs? Recently, my EJ advisor talked about our financial plans with someone in our family that is not named on our account.
Though it is technically OP's account, it appears that all contributions were made by grandma. With that in mind, I think it behooves OP to first find out what exactly grandma wants; if OP was already aware that that is what grandma wanted and still attempted to move the money away without telling her (though it was a gift and the giver really ought not set conditions, but grandma is grandma), then OP ought not be complaining about EJ.
It's a joint account that she's just been putting money in. I recently started reading/learning about index investing which led me to look at all our investments and fees associated.

Grandma had never said anything because it has never come up until now. We've taken money out in the past and it was never an issue, I assumed she wouldn't care, now I know she does so we intend to respect her wishes.
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scsu74
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Re: CFA confidentiality

Post by scsu74 »

hornet96 wrote: Mon Dec 30, 2019 4:17 pm
scsu74 wrote: Mon Dec 30, 2019 2:36 pm
Shoot, just double checked and it's CFP next to his name. Are they the same or different?
They aren’t even remotely similar credentials. CFP is MUCH easier to obtain; however, they are still bound by certain rules on ethics. With that said, you should focus on the advice others have given with regard to the relationship aspects with grandma in law, etc.
Gotcha, thank you!
BSBHead
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Re: CFA confidentiality

Post by BSBHead »

You should consider filing a complaint with FINRA based on your two posts about EJ.
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Re: CFA confidentiality

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^^^ With regards to FINRA, see the wiki: Investment adviser (FINRA Broker Check)

Run a background check on the advisor. The check includes a list of his qualifications. If anyone has formally filed a complaint against him, it will be in the report.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
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Re: CFA confidentiality

Post by Stinky »

scsu74 wrote: Mon Dec 30, 2019 4:41 pm
We can withdraw, just not invest anywhere with her money. I don't really understand, but whatever. It's less than half of our total investments. Just bugs me losing money to fees when it's unnecessary.
Look at the bright side.

If Grandma’s restrictions continue for 10 years, and if EJ excess fees are 2% per year, then you will lose 18% of the potential if you could invest elsewhere.

But if you don’t follow her restrictions, you’ll lose 100% of the potential. :oops:

I’ll take 82% over 0% every day. :moneybag
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DippityDoo
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Re: CFA confidentiality

Post by DippityDoo »

scsu74 wrote: Mon Dec 30, 2019 4:44 pm Grandma had never said anything because it has never come up until now. We've taken money out in the past and it was never an issue, I assumed she wouldn't care, now I know she does so we intend to respect her wishes.
It's one thing if it's her wishes. It's another if she has been bullied or pressured by the EJ sales rep. If you do file a complaint, please make it clear that the party the EJ rep involved is an older adult. The possibility of financial manipulation of an elderly person adds gravity to the situation in my not-so-humble opinion. Especially when you say withdrawing funds wasn't a problem in the past but became a problem after interference by the EJ rep.
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scsu74
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Re: CFA confidentiality

Post by scsu74 »

DippityDoo wrote: Tue Dec 31, 2019 5:57 am
scsu74 wrote: Mon Dec 30, 2019 4:44 pm Grandma had never said anything because it has never come up until now. We've taken money out in the past and it was never an issue, I assumed she wouldn't care, now I know she does so we intend to respect her wishes.
It's one thing if it's her wishes. It's another if she has been bullied or pressured by the EJ sales rep. If you do file a complaint, please make it clear that the party the EJ rep involved is an older adult. The possibility of financial manipulation of an elderly person adds gravity to the situation in my not-so-humble opinion. Especially when you say withdrawing funds wasn't a problem in the past but became a problem after interference by the EJ rep.
And it really does bother me that she'll basically do whatever he says because "he's good with money" her words. In my opinion opinion her knows exactly how much money she has and her intentions for it. He'll basically get 25% of whatever that sum is as long as nobody moves their accounts (like us).

Also, imagine how many other clients he has in this position. He works in a small town so I'm guessing everyone there goes to him because "he's good with money."
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scsu74
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Re: CFA confidentiality

Post by scsu74 »

Stinky wrote: Mon Dec 30, 2019 6:13 pm
scsu74 wrote: Mon Dec 30, 2019 4:41 pm
We can withdraw, just not invest anywhere with her money. I don't really understand, but whatever. It's less than half of our total investments. Just bugs me losing money to fees when it's unnecessary.
Look at the bright side.

If Grandma’s restrictions continue for 10 years, and if EJ excess fees are 2% per year, then you will lose 18% of the potential if you could invest elsewhere.

But if you don’t follow her restrictions, you’ll lose 100% of the potential. :oops:

I’ll take 82% over 0% every day. :moneybag
Very true. And at least it's not a 2% yearly fee, it's just a transaction fee on new purchases. The yearly fee is just the ER, which is very low for VTI and VXUS.
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scsu74
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Re: CFA confidentiality

Post by scsu74 »

LadyGeek wrote: Mon Dec 30, 2019 5:31 pm ^^^ With regards to FINRA, see the wiki: Investment adviser (FINRA Broker Check)

Run a background check on the advisor. The check includes a list of his qualifications. If anyone has formally filed a complaint against him, it will be in the report.
Thank you! I'll check that out
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Re: CFA confidentiality

Post by DippityDoo »

scsu74 wrote: Thu Jan 02, 2020 9:32 am In my opinion opinion her knows exactly how much money she has and her intentions for it. He'll basically get 25% of whatever that sum is as long as nobody moves their accounts (like us).
25% of an elderly person's funds? :shock: I am not an attorney, but it sounds like it could be financial exploitation of an older adult. Here's a link that can tell you more about relevant laws in your state.

United States Department of Justice
ElderAbuse and Elder Financial Exploitation Statutes
https://www.justice.gov/elderjustice/pr ... tegory=All
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