BISMARCK — The North Dakota Securities Department, a member of the North American Securities Administrators Association (NASAA), has joined a $17 million settlement with Edward D. Jones & Co. L.P. (Edward Jones).

According to a release from the N.D. Securities Department, the settlement resulted from an investigation into the broker-dealer’s supervision of customers paying front-load commissions – a sales charge at the time of initial purchase – for Class A mutual fund shares.

According to the release, a working group of 14 state securities regulators investigated Edwad Jones for four years. The investigation looked into Edward Jones’ supervision of customers moving from brokerage to advisory accounts in light of the 2016 U.S. Department of Labor fiduciary rule that would make investment advice to retirement accounts subject to a fiduciary standard of care. The rule requires fiduciaries act in the best interests of their clients and not their own interests.

The investigation found Edward Jones charged front-load commissions for investment in Class A mutual Fund shares in situations in which the customer sold or moved the mutual fund shares sooner than originally anticipated. The states found gaps in Edward Jones’ supervisory procedures.

In evaluating the supervisory failures and determining the appropriate resolution, the states considered certain facts, such as the positive performance of the investment advisory accounts as compared to the brokerage accounts.

Edward Jones will pay an administrative fine of about $320,000 to each of the 50 states, Washington D.C., the U.S. Virgin Islands and Puerto Rico as a part of the settlement.

“In partnership with NASAA and other state securities regulators, we will continue to protect Main Street investors and ensure that companies operating in North Dakota follow our securities laws,” said Securities Commissioner Tim Karsky. “North Dakota Securities Department appreciates the ongoing cooperation of Edward Jones throughout this investigation and settlement process. Firms that offer both brokerage and investment advisory services should be mindful that customers are receiving the services the customer wants at an appropriate price.”