Edward Jones has introduced significant updates to align with broader industry practices, aiming to attract more experienced advisors and high-net-worth clients. These changes include allowing advisors to charge for financial planning services and expanding the firm's Separately Managed Account (SMA) offerings.
According to AdvisorHub , for the first time, Edward Jones advisors can charge clients up to $3,600 annually for creating and overseeing financial plans. Initially available to a small group of 600 advisors, the program will expand to all 19,000 advisors by the end of 2025. The firm initially tested the service by offering financial planning through its home office in St. Louis. Advisors referred eligible clients to wealth strategists for fiduciary financial planning, and Edward Jones plans to continue offering this home office service to select clients.
To participate in the new financial planning service, clients must have a minimum of $250,000 in investable assets. The firm will roll out the program gradually, starting in 2024. In addition to the financial planning services, Edward Jones is enhancing its SMA offerings. The firm will introduce a new home-office-managed SMA and expand the number of third-party-managed SMA options from 70 to over 300 by the end of the year. These changes aim to cater to high-net-worth clients and attract experienced advisors.
AdvisorHub also reports that the new home-office SMA will be part of Edward Jones' Unified Managed Account (UMA) program, which requires a minimum investment of $300,000, $500,000, or $1 million. The SMA can be offered as a standalone strategy or as part of a diversified portfolio and will include professional tax management and customization options based on client preferences. While Edward Jones will not charge fees for the SMA, advisory fees will apply through the UMA program.
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