By AP/KWMU
St. Louis – The Securities and Exchange Commission is considering enforcement action against Edward Jones over the company's mutual fund sales practices.
That's according to an SEC filing Tuesday by the St. Louis-based brokerage.
An SEC inquiry has called into question whether Edward Jones' revenue-sharing arrangements with investment companies violate National Association of Securities Dealers rules.
An Edward Jones spokeswoman says many financial service firms are being questioned concerning mutual fund sales practices.
The Wall Street Journal reports on its Web site that the inquiries involve Edward Jones' practice of receiving large payments from seven "preferred" mutual fund companies the company recommends most highly to customers.
Revenue-sharing fees are legal, as long as the arrangements are properly disclosed.