Why won't a stock broker email you recommendations on bonds and mutual funds?

Question

I have an account with Edward Jones and the broker there will not email me anything. I travel a lot and in many cases I am not available to talk by phone and miss opportunities to buy bonds because the broker will not email me a Prospectus. This is the same on Mutual Fund recommendations. I am told they call only talk on the phone or in person. Why is this?

Answer 1

The rules and regulations states that the prospectus must be physically delivered to all potential investors, e-mail is not considered being physically delivered (Per the Securities & Exchange Commission).

E-mail is not considered secured, therefore it can not be done.  These rules & regs have been tested and they stand up - no e-mail.

If you have been buying new issues through any B/D, is it really imperative that you read the prospectus in that great of detail, especially if you're buying from a reputable B/D and buying bonds in a major corporation or a bond with a very high rating or even insured.

You could have the B/D mail the prospectus to you're home address or business address and when you get the chance, read it.  But take a few minutes and make the phone call to your broker

It is also a rule that the office manager of all B/D must read and appove all correspondence sent by any and all employes, using e-mail is not managable by managers therefore most reputable firms do not permit sales reps communicating with clients by e-mail.

Edward Jones is a very respected firm, and they should be admired for complying with the rules & regulations rather than trying to placate a customer.

Effandt's response was not that bad and it was much better than

Gompy US's whose response is off the wall.

Answer 2

Many companies have rules prohibiting them from sending "values" via email. No matter what they tell you it is NOT secure enough to trust for your investing information. Most prospectus' are fairly large and would be a burden to scan and email as well. They also cannot be sure it is really you that responds to the email so they are required to have verbal confirmation. It is all designed for your protection!

Answer 3

Any financial institution with any sense (bank, broker, etc.) is not going to provide confidential information in an e-mail, because that is not secure (passed through internet as plain text that could be intercepted by others), and "From" address is too easily forged (you don't really know who it is from).  Haven't you ever received worms that appear to be from a friend, spam with stock tips, or phishing attempts that appear to be from banks trying to get login or confidential info?

Basically don't put anything in an e-mail you do not want made public, and be cautious about believing any e-mail, since it is too easily forged.

Answer 4

My sarky answer is that he is trying to avoid leaving a paper trail.

Answer 5

Answer 1 is ridiculous. An offering is not secret.

Answer 2 is much better.

Banks, insurance companies and broker -dealer firms are scared because of the past occurrences, i.e. Enron, Credit Debacle, etc. They prefer that nothing is in writing, so you have no claim against them. However, most banks, BD firms will sent you the outline (offering memo), because that's the law. You have to review it before you invest. If your BD firm doe snot sent you the offering memo, I suggest you leave them, since you don't trust them. Keep in mind, the LAW demands they sent you the offering memorandum PRIOR to any investment.