Edward D. Jones & Co., a company with a long history of single-broker branch offices, has introduced a pilot program that allows its 19,000 advisors to share clients.
The program, launched last year and now open to all advisors, aims to enhance client service and increase efficiency. According to Don Aven, the principal of branch team market optimization, advisors embraced working in teams to adapt to the changing industry and meet evolving client expectations.
While the traditional solo practitioner model had successfully fostered strong personal relationships with clients, Edward Jones recognizes the need to evolve and improve how they serve their clients in response to industry changes, according to Aven.
According to AdvisorHub, the removal of the teaming barrier is one Edward Jones has made as part of an effort to modernize and reshape the firm under CEO Penny Pennington, who took over in 2019. The firm, in 2021, also began allowing advisors to share office space and support staff. At least 700 advisors now share offices, Aven said. Edward Jones also has an option for its client associates, called branch office administrators, to become licensed to accept trade orders and work as associate financial advisors.
Failing to adapt to the trend of teaming could have significant consequences. While Edward Jones has seen a slight decrease in its attrition rate, dropping from 5.6% to 5.2% as of March, several notable advisors have departed to establish teams at other firms, such as LPL Financial, Ameriprise Financial, and Raymond James Financial. This indicates the growing popularity of team-based approaches in the industry and highlights the potential loss of talent and clients if Edward Jones fails to embrace this shift.
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