According to FINRA, Edward D. Jones & Co., L.P. was censured, fined $1,100,000, and required to establish and implement policies and procedures to address the issues identified.

The firm failed to timely, completely, and accurately produce certain phone records in response to FINRA's requests for documents in connection with investigations into allegations of potential misconduct, including unauthorized trading, discretionary trading, and excessive trading. In its responses to these requests, the firm failed to search a storage location containing call detail records older than 18 months, which housed responsive documents. Additionally, in most investigations, the firm inaccurately represented in its responses or in a legend attached to its productions that records older than 18 months were not available.

Members of the firm's group responsible for responding to regulatory requests learned of the storage location and realized that the firm should be searching that location when responding to certain requests for call detail records. They understood that some of the firm's past responses to requests from regulators were likely incomplete. Despite this awareness, the firm failed to promptly advise FINRA of its production failures, doing so only eight months after learning of the issue, and only after FINRA raised questions about an incomplete production in another matter. The firm also failed to identify all affected investigations until more than a year after discovery and failed to contact most affected parties until more than two years after discovery.

Furthermore, the firm failed to preserve certain responsive call detail records from an internal network drive during the pendency of regulatory requests. The firm did not take action to prevent responsive records from being deleted pursuant to the firm's purge protocol, resulting in missing call detail records ranging from several days to several weeks.

This case underscores the critical importance of document preservation and complete cooperation with regulatory investigations. Investors should be aware that incomplete or delayed production of records can hinder investigations into potential misconduct, potentially allowing problematic behavior to continue undetected.