Fidelity Charged with Unethical Behavior

Generating fees for the firm and unregistered advisers has been deemed unethical behavior by the commonwealth of Massachusetts. According to a statement from the secretary of commonwealth, William Galvin, at least 13 unregistered Massachusetts investment advisers used Fidelity’s broker-dealer platform.

Gavin said, “Fidelity served as a haven from regulatory oversight as it ignored blatant unregistered investment advisory activity.”

Fidelity has issued a public statement defending itself. Adam Banker, a Fidelity spokesman said, “We do not believe that Fidelity has violated any laws or regulations in connections with this matter. We look forward to reviewing the details of this matter and addressing them appropriately.”

It is extremely important to comprehend the full range of investor protection provisions. Without a proper understanding you’ll be looking at a lawsuit in no time. Fidelity has had policies in place since 2011 regarding matters of third party trading, but were ignoring those until recently.

The team of investment fraud lawyers at Starr Austen & Miller LLP fights for the protection of investors and handles cases involving securities arbitration misrepresentation, overconcentration, broker fraud, negligence and breach of trust.