Fidelity B-Ds fined for misleading G.I.s

NASD announced today that it has fined two Fidelity Investments broker-dealers $400,000 for preparing and distributing misleading sales literature promoting plans that were sold primarily to U.S. military personnel.
MAY 08, 2007
By  Bloomberg
NASD announced today that it has fined two Fidelity Investments broker-dealers $400,000 for preparing and distributing misleading sales literature promoting plans that were sold primarily to U.S. military personnel. NASD found that two Fidelity units -- Fidelity Investments Institutional Services Co. and Fidelity Distributors Corp. -- broke NASD advertising rules between January 2003 and January 2006 by preparing and distributing literature that falsely portrayed the performance of Fidelity's Destiny I and II Systematic Investment Plans. Fidelity Investments Institutional Services Company and Fidelity Distributors Corporation settled the action without admitting or denying the charges. Under the settlement, for the next five years, the two broker-dealers at Fidelity Institutional are required to notify Destiny Plan holders that additional shares of the underlying fund can be purchased outside the plans without paying the additional creation and sales charges of up to 50% on the first year's payments. Issuance and sales of the plans, which typically require investors to make a fixed number of monthly payments over a 10- to 15-year period, were prohibited by Congress last fall. However, previously sold plans remain in action. Fidelity Investments is based in Boston.

Latest News

RIA moves: True North adds $353M California RIA as SageView grows North Carolina presence
RIA moves: True North adds $353M California RIA as SageView grows North Carolina presence

Plus, a $400 million Commonwealth team departs to launch an independent family-run RIA in the East Bay area.

Top Commonwealth advisor to recruiters: Stop with the cold calls already!
Top Commonwealth advisor to recruiters: Stop with the cold calls already!

“I respectfully request that all recruiters for other BDs discontinue their efforts to contact me," writes Thomas Bartholomew.

Blue Owl Capital, Voya strike private market partnership for retirement plans
Blue Owl Capital, Voya strike private market partnership for retirement plans

The collaboration will focus initially on strategies within collective investment trusts in DC plans, with plans to expand to other retirement-focused private investment solutions.

Why AI notetakers alone can't fix 'broken' advisor meetings
Why AI notetakers alone can't fix 'broken' advisor meetings

Wealth tech veteran Aaron Klein speaks out against the "misery" of client meetings, why advisors' communication skills don't always help, and AI's potential to make bad meetings "100 times better."

Morgan Stanley, Goldman, Wells Fargo to settle Archegos trades lawsuit
Morgan Stanley, Goldman, Wells Fargo to settle Archegos trades lawsuit

The proposed $120 million settlement would close the book on a legal challenge alleging the Wall Street banks failed to disclose crucial conflicts of interest to investors.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.