Fidelity Fined $350,000 for Overcharging Customers

Posted on February 7th, 2015 at 3:34 PM
Fidelity Fined $350,000 for Overcharging Customers

From the Desk of Jim Eccleston at Eccleston Law Offices:

Fidelity Investments Group, the third-largest custodian as ranked by the number of registered investment adviser clients, recently has been fined $350,000 by FINRA for overcharging more than 20,000 clients a total of $2.4 million.

Between January 2006 and September 2013, Fidelity inappropriately charged for certain transactions in fee-based accounts in its Institutional Wealth Services group, which provides trading and brokerage services to investment advisers and their clients.

According to FINRA, the overcharges resulted from a gap in supervision over how Fidelity applied fees under its asset-based pricing model. As a result, certain clients might have been double-billed or charged excess commissions in addition to the asset-based management fee.

Fidelity discovered the problems in the spring of 2012, self-reported the issue to FINRA and voluntarily reimbursed all clients. The issues affected roughly 1.5% of the brokerage accounts held for investment advisers and the majority required reimbursement of less than $100.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: FINRA, Fidelity Investments Group, Investment Adviser

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Jim, Stephany and the whole team were a God send.  We felt like we were put into a situation where we had no advocate. Jim’s team came in with a strong, well laid out strategy on how to get our story heard. Where our outside compliance company had no ability to help, our Broker Dealer was impenitent, and the regulators were aggressive pursuing vague rules, Jim came like a barricade against an assault we did not understand. Though you pay member dues to be affiliated with FINRA and a B/D, you have no voice. The only thing that is truly heard in this un-level playing field is a bulldog’s bark like Jim’s. I would encourage anyone to call Jim and his team to find a real ally in the tough and complicated world of securities regulation. They are truly the best.

Greg P.


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