Massachusetts Charges Fidelity over Unregistered Advisors

Posted on November 17th, 2015 at 9:25 AM
Massachusetts Charges Fidelity over Unregistered Advisors

From the Desk of Jim Eccleston at Eccleston Law LLC:

Massachusetts securities division has charged Fidelity Brokerage Services LLC with knowingly allowing unregistered individuals to act as investment advisors for Fidelity customers.

Fidelity allowed more than a dozen unregistered individuals to use trading authorizations for more than 300 accounts, despite internal concerns that the individuals should be registered as investment advisors.

However, Fidelity’s own procedures require the termination of a trading authorization if an unregistered individual conducting advisory business. Moreover the firm was well aware that fees were being deducted from customer accounts and paid to the unregistered advisors.

The firm’s “willful ignorance” in allowing unregistered persons to trade customer accounts put its customers at risk.

The attorneys of Eccleston Law LLC 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: Eccleston, Eccleston Law, Eccleston Law LLC, James Eccleston,

Return to Archive



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.


May 19, 2022
UBS Advisor Joins U.S. Capital After Contentious Compliance Review

A UBS Wealth Management advisor who generated $3 million in annual revenue has joined U.S. Capital Wealth Advisors, which is a regional Texas-based firm run by a former UBS manager.

May 18, 2022
Some Advisors Chose Inopportune Time To Boost Bet On GWG Bonds

Financial advisors who chose to double down on GWG are having second thoughts.

May 17, 2022
Focus Financial Board Member Sues J.P. Morgan Over $7 Million In Pandemic Losses

A California dermatologist, who also is a Focus Financial Partners board member, has filed a $7 million arbitration claim against J.P. Morgan over pandemic-related losses in a managed account.