Brokerage firm Edward D. Jones said it could face regulatory action and fines for recommending some funds over others without revealing to customers the financial incentives it received to give such advice, Reuters reports.

The Jones Financial Companies, parent of Edward D. Jones, said Securities and Exchange Commission staff informed the firm that it is "considering recommending" enforcement action in connection to the firm’s mutual fund sales practices, according to a regulatory filing. Additionally, the firm said the NASD has joined the fight, recommending an enforcement action be taken against St. Louis-based firm.

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