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IGNITES

Ail that's hot in the mutual fund industry An Information Service of Money-t-1edlo

Print I CLQ~e Wingow

Ed Jones Pays Rev-Share Settlement
Article published on Apr 27, 2007

Edward Jones has sent out payments as part of its settlement ending revenue-sharing disclosure charges, Dow
Jones Newswires reports.

The brokerage reached the settlement with the SEC in 2004, agreeing to pay a $37.5 million penalty and return $37.5
million of allegedly ill-gotten gains and interest.

The regulator had alleged that Jones failed to fully disclose rev-sharing payments it got from seven mutual funds on
its preferred list. While Jones told customers that funds got put on the list due to their performance and investing
objectives, in reality it was getting tens of millions in annual payments from the fund companies in exchange for
selling the funds, the SEC says.

The SEC approved a distribution plan for the payments about a year ago, and final payments in the settlement,
totaling $79 million, were scheduled to be sent out Thursday, the SEC says.

Customers with active Jones accounts will have their accounts automatically credited, while ex-customers have been
sent checks to their last known address.
By Joe Morris

(News summaries based on original reports in other publications are prepared by the ignites. com staff and are not
created, sponsored, approved or endorsed by the publications to which the original reports are attributed.)

• To read the Dow Jones Newswires article cited in this story, click here 1 if you have a paid subscription.

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1. http://online.wsj.com/article_print/BT-CO-20070426-715794.html

http://www.ignites.com/articles/print/20070427/jonesyays_share_settlement 04/27/2007