Edward Jones to Expand Advisor Team Strategy

Edward Jones is also “reacting to advisor demographics that show much of their advisor force is getting close to retirement and they need to get younger advisors matched up to facilitate the transition,” according to Welsh.

“Making a big deal out of a practice that has been widespread for decades is not innovative, yet is a hallmark of a legacy culture they are trying to change,” he added.

Other Teaming Models May Follow

“As the need for comprehensive financial advice and wealth management increases, teaming enables our branch teams to stay competitive and deliver on the complex needs of our clients and investors more effectively,” according to Ken Cella, principal, branch development at Edward Jones.

“Some of the benefits our financial advisors have experienced include increased capacity and enhanced client support,” he said in a statement.

“These, in turn, can help elevate the client experience and the ability to plan for succession,” he added. “The teams involved have access to additional support and learning opportunities within their larger branch team. Teaming allows our financial advisors to continue an intimate understanding of our clients’ lives across health, family, purpose, and finance.”

As Edward Jones completes its test-and-learn pilot programs, the company “could offer other teaming models in the future involving a lead financial advisor, junior advisor and specialists for tax, trust, product, or other client needs,” Cella disclosed.

“For us, this is all about listening to our financial advisors and offering them greater flexibility and choice in how they serve their clients on our journey toward human-centered complete wealth management,” he added.

Many Advisors to Remain Solo

Despite the advantages of being part of a team, many of the firm’s advisors are expected to remain on their own.

Edward Jones’ traditional model, which includes one advisor and branch office administrator per office, has “served the firm well for the last 100 years,” the company said.

“Many financial advisors and their branch support members prefer and will remain in this model,” the firm predicted. That said, the company is also considering a model that would expand the role of branch support professionals.

In two-financial-advisor and multi-financial-advisor models, Edward Jones advisors who choose to co-locate their branches with another advisor will continue to maintain independent client relationships, financial, performance and regulatory processes, according to the firm.

Similarly, clients will continue to partner with one advisor, allowing that advisor to “maintain and develop deep, trusted, long-lasting relationships with each of their clients,” Edward Jones said.

(Pictured: Ken Cella, principal, branch development at Edward Jones)