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

TESTIMONIALS

Previous
Next

As a financial advisor with over 20 years of experience, I feel fortunate to call Jim my attorney and friend. He is a fantastic lawyer and trusted advisor. He is skilled in the matters necessary to do the job well. He uses his thoughtful approach and calm demeanor to achieve a positive outcome for the client. If you want to feel confident that nothing will be missed and that you will be represented in a highly professional manner, call Jim Eccleston.

Bill C. and Dan M.

LATEST NEWS AND ARTICLES

October 27, 2021
Former LPL Advisor Suspended For Completing 22 Trades Absent Client Consent

The Financial Industry Regulatory Authority (FINRA) has suspended and fined a former LPL advisor who allegedly completed 22 trades on behalf of a client without obtaining written consent. FINRA has issued a $5,000 fine and has suspended Michael Hartlett for 10 days.

October 26, 2021
Former Advisor Fails To Reverse Bar After Alleged $1 Million Theft From RBC

A former RBC Wealth Management advisor lost his bid to reverse an industry bar, according to an appellate decision issued by the Financial Industry Regulatory Authority (FINRA).

October 25, 2021
Firms Walk Thin Regulatory Line In Referring Self-Directed Clients To Advisors

While online trading platforms have surged in popularity during the pandemic, brokerage firms view self-directed investors as a source of new clients.