Securities Lawyers Blog
The securities attorneys at Gana Weinstein LLP represent investors in their disputes with brokerage firms, such as Fidelity Brokerage Services LLC. Our firm can analyze your accounts and investments in order to determine if there was any broker misconduct in the handling of your accounts. Our analysis can reveal whether an investor has been a victim of misconduct such as unsuitable investments, unauthorized trading, excessive trading, or investment fraud.
Fidelity Brokerage Services LLC is the retail broker-dealer of Fidelity Investments, offering brokerage accounts for personal and retirement investing, cash management, and trading in mutual funds, ETFs, stocks, bonds, college savings plans, and insurance products. The firm is a member of the New York Stock Exchange and offers retail brokerage accounts with no account minimums or account fees and commission-free online trading in U.S. stocks and ETFs.
Fidelity Brokerage Services LLC – By the Numbers:
- CRD #: 7784
- Regulatory Events: 24
- Arbitration Events: 128
- Broker Employees: 29,482
Fidelity Brokerage Services LLC – In the News:
FINRA v. Fidelity Brokerage Services LLC (Case #2021070253901) – Fidelity, through an affiliate, provides recordkeeping services to companies (plan sponsors) for their equity compensation plans through stock plan services (SPS) accounts for the companies’ domestic and international employees (plan participants). From December 2012 to October 2020, the firm’s supervisory system, including its written supervisory procedures, was not reasonably designed to supervise associated persons’ access to SPS account data or the transmittal of funds from international SPS accounts. As a result, the firm failed to detect that, for nearly eight years, an associated person responsible for supporting the maintenance of SPS account data converted approximately $750,000 from 37 international plan participants. Therefore, Fidelity violated FINRA Rules 3110 and 2010 and NASD Rules 3010 and 3012. Fidelity is censured and fined $600,000.
FINRA v. Fidelity Brokerage Services LLC (Case #2021071987001) – From May 2017 through April 2022, Fidelity did not exercise reasonable due diligence before approving customers to trade options. During this period, the firm used an automated, electronic system to screen customers’ online applications to trade options, after which a principal at the firm reviewed and then approved or disapproved customer accounts for options trading. Flaws in the firm’s system for reviewing options trading applications resulted in customers being approved for options trading who did not satisfy the firm’s eligibility criteria or who submitted successive applications with materially different information concerning their finances and/or investment experience that raised red flags that the level of options trading the customer sought was inappropriate for them. As a result, the firm violated FINRA Rules 3110, 2360, and 2010.
FINRA v. Fidelity Brokerage Services LLC (Case #2015046581001) – In 20150465810, the Department of Market Regulation’s Municipal Securities Bonds Team and the Department of Member Regulation reviewed the firm’s compliance with Municipal Securities Rulemaking Board (“MSRB”) Rule G-15(f) during the period December 1, 2013 through December 31, 2015, as well as related disclosure and supervisory requirements. MSRB Rule G-15(f)(i) prohibits a broker, dealer, or municipal securities dealer from effecting a customer transaction in municipal securities issued after June 1, 2002 in an amount lower than the minimum denomination of the issue. During the review period, the firm effected 15 customer transactions in a municipal security in an amount lower than the minimum denomination of the issue, in violation of MSRB Rule G-15(f). The firm also failed to disclose all material facts concerning 14 municipal securities transactions at or prior to the time of trade, specifically that the transactions were in amounts below the minimum denomination of the issue, in violation of MSRB Rules G-17 and G-47. In addition, the firm’s supervisory system did not provide for supervision reasonably designed to achieve compliance with these requirements, in violation of MSRB Rule G-27.
Gana Weinstein LLP has successfully handled hundreds of customer investment disputes with their brokerage firms. Our attorneys can help you detect and uncover suspicious activity in your accounts. Our consultations are free and we welcome all inquiries.