Massachusetts securities regulators have charged Fidelity Brokerage Services with unethical and dishonest conduct and practices in the securities business over its rubber-stamping of options trading applications.
Citing the company’s “half-hearted and lackadaisical attitude” toward safeguarding retail investors, the state’s securities division charged Fidelity with “failure to properly vet customers who applied to be approved for options and margin trading.”
Regulators said that Fidelity’s application review system allowed customers to submit multiple applications, each time with the information altered until the customers met the requirements to be approved.
The administrative complaint, filed by Secretary of the Commonwealth William F. Galvin's securities division, details examples of repeated applications – in some instances as many as 13 in one month – with inflated financials, investment experience and employment information that Fidelity reviewers failed to notice, despite having contrary information already in the firm’s system.
The state is seeking to censure Fidelity, require it to retain an independent compliance consultant to remedy the conditions, and impose an administrative fine that a hearing officer will determine at a future date.
RIA aggregator adds $4.8 billion in client assets across seven states as demand grows for alternatives to traditional succession models.
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
Shareholder targets FS KKR Capital's directors over alleged portfolio valuation and dividend missteps.
UBS has a history of costly litigation stemming from the sale of volatile investment products.
New director David Woodcock puts firms on notice over fees, conflicts, and liquidity risk as private credit shows signs of stress.
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline
