The NASD has fined Edward Jones $250,000 for overcharging customers who bought mutual funds.  The regulatory body said Jones and three other firms charged a sales load to customers who should have qualified for a no-fee fund purchase. No-fee purchases are sometimes possible when a customer has already paid a load to buy one fund, and is transferring the money to another fund.

Here’s the statement from James Shorris, NASD executive vice president:

The failures on the part of Edward Jones, RBC Dain Rauscher, Royal Alliance, and Morgan Stanley to adequately supervise the identification and implementation of NAV transfer programs deprived their customers of substantial discounts on mutual fund purchases. Securities firms must learn all of the relevant pricing features of the fund shares they sell and ensure that eligible investors receive all available discounts and sales charge waivers, without exception.