Edward D. Jones Brokerage Defeats Fee-Based Accounts Case (1)

Edward D. Jones & Co. is off the hook from a suit by customers who say the brokerage firm recommended fee-based investment accounts to them even though the accounts weren’t appropriate for their needs.

The firm didn’t owe the investors a fiduciary duty because it “was acting only as a prospective investment adviser when recommending Advisory Solutions accounts,” Judge Daniel J. Calabretta said. His opinion was entered Monday in the docket of the US District Court for the Eastern District of California.

Edward Jones also isn’t liable to investors who sued over a different account type that the firm recommended ...