The mutual fund scandal at
is costing the brokerage's top executive his job.
The shamed St. Louis securities firm said Douglas Hill, the firm's managing partner and chief executive officer, will "voluntarily retire" at the end of next year as part of a $75 million settlement with regulatory and federal prosecutors.
Edward Jones announced Hill's departure in a corporate filing late Monday. The firm disclosed Hill's resignation a week after it reached a settlement in a lengthy investigation into hidden revenue-sharing deals Edward Jones had with seven mutual fund families.
Regulators fined Edward Jones for taking tens of millions of dollars in secret fees to tout the seven "preferred" fund families to its customers. Regulators contend the undisclosed fees created a conflict of interest because Edward Jones never told customers it had a financial interest in pushing a small group of mutual funds.
Edward Jones says Hill will pay about $3 million of the fine levied against the brokerage.