BrokerCheck Report FIDELITY DISTRIBUTORS COMPANY LLC Section Title Report Summary Firm History CRD# 17507 1 8 Firm Profile 2 - 7 Page(s) Firm Operations 9 - 26 Disclosure Events 27 Please be aware that fraudsters may link to BrokerCheck from phishing and similar scam websites, trying to steal your personal information or your money. Make sure you know who you’re dealing with when investing, and contact FINRA with any concerns. For more information read our investor alert on imposters. i
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
BrokerCheck Report
FIDELITY DISTRIBUTORS COMPANY LLC
Section Title
Report Summary
Firm History
CRD# 17507
1
8
Firm Profile 2 - 7
Page(s)
Firm Operations 9 - 26
Disclosure Events 27
Please be aware that fraudsters may link to BrokerCheck from phishing and similar scam websites, trying to steal your personal information or your money.Make sure you know who you’re dealing with when investing, and contact FINRA with any concerns.
For more information read our investor alert on imposters.
BrokerCheck offers information on all current, and many former, registered securities brokers, and all current and formerregistered securities firms. FINRA strongly encourages investors to use BrokerCheck to check the background ofsecurities brokers and brokerage firms before deciding to conduct, or continue to conduct, business with them.
· What is included in a BrokerCheck report?· BrokerCheck reports for individual brokers include information such as employment history, professional
qualifications, disciplinary actions, criminal convictions, civil judgments and arbitration awards. BrokerCheckreports for brokerage firms include information on a firm’s profile, history, and operations, as well as many of thesame disclosure events mentioned above.
· Please note that the information contained in a BrokerCheck report may include pending actions orallegations that may be contested, unresolved or unproven. In the end, these actions or allegations may beresolved in favor of the broker or brokerage firm, or concluded through a negotiated settlement with noadmission or finding of wrongdoing.
· Where did this information come from?· The information contained in BrokerCheck comes from FINRA’s Central Registration Depository, or
CRD® and is a combination of: o information FINRA and/or the Securities and Exchange Commission (SEC) require brokers and
brokerage firms to submit as part of the registration and licensing process, and o information that regulators report regarding disciplinary actions or allegations against firms or brokers.
· How current is this information?· Generally, active brokerage firms and brokers are required to update their professional and disciplinary
information in CRD within 30 days. Under most circumstances, information reported by brokerage firms, brokersand regulators is available in BrokerCheck the next business day.
· What if I want to check the background of an investment adviser firm or investment adviserrepresentative?
· To check the background of an investment adviser firm or representative, you can search for the firm orindividual in BrokerCheck. If your search is successful, click on the link provided to view the available licensingand registration information in the SEC's Investment Adviser Public Disclosure (IAPD) website athttps://www.adviserinfo.sec.gov. In the alternative, you may search the IAPD website directly or contact yourstate securities regulator at http://www.finra.org/Investors/ToolsCalculators/BrokerCheck/P455414.
· Are there other resources I can use to check the background of investment professionals?· FINRA recommends that you learn as much as possible about an investment professional before
deciding to work with them. Your state securities regulator can help you research brokers and investment adviserrepresentatives doing business in your state.
·Thank you for using FINRA BrokerCheck.
For more information aboutFINRA, visit www.finra.org.
Using this site/information meansthat you accept the FINRABrokerCheck Terms andConditions. A complete list ofTerms and Conditions can befound at
For additional information aboutthe contents of this report, pleaserefer to the User Guidance orwww.finra.org/brokercheck. Itprovides a glossary of terms and alist of frequently asked questions,as well as additional resources.
900 SALEM STREETSMITHFIELD, RI 02917Regulated by FINRA Boston Office
Mailing Address
TWO DESTINY WAYMAIL ZONE WG3DWESTLAKE, TX 76262
Business Telephone Number
800-237-8132
Report Summary for this Firm
This report summary provides an overview of the brokerage firm. Additional information for this firm can be foundin the detailed report.
Disclosure Events
Brokerage firms are required to disclose certaincriminal matters, regulatory actions, civil judicialproceedings and financial matters in which the firm orone of its control affiliates has been involved.
Are there events disclosed about this firm? Yes
The following types of disclosures have beenreported:
Type Count
Regulatory Event 3
Arbitration 17
Firm Profile
This firm is classified as a limited liability company.
This firm was formed in Delaware on 01/01/2020.
Its fiscal year ends in December.
Firm History
Information relating to the brokerage firm's historysuch as other business names and successions(e.g., mergers, acquisitions) can be found in thedetailed report.
Firm Operations
Is this brokerage firm currently suspended with anyregulator? No
This firm conducts 1 type of business.
This firm is affiliated with financial or investmentinstitutions.
This firm does not have referral or financialarrangements with other brokers or dealers.
This firm is registered with:
• the SEC• 1 Self-Regulatory Organization• 52 U.S. states and territories
This firm is classified as a limited liability company.
This firm was formed in Delaware on 01/01/2020.
CRD#
This section provides the brokerage firm's full legal name, "Doing Business As" name, business and mailingaddresses, telephone number, and any alternate name by which the firm conducts business and where such name isused.
Firm Profile
Firm Names and Locations
Its fiscal year ends in December.
FIDELITY DISTRIBUTORS COMPANY LLC
SEC#
17507
8-35097
Main Office Location
Mailing Address
Business Telephone Number
Doing business as FIDELITY DISTRIBUTORS COMPANY LLC
Description EFFECTIVE JANUARY 1, 2020, FIDELITY GLOBAL BROKERAGE GROUP, INC.,THE DIRECT OWNER OF FIDELITY DISTRIBUTORS CORPORATION ANDFIDELITY INVESTMENTS INSTITUTIONAL SERVICES COMPANY, INC. (FIISC)MERGED THE TWO FIRMS. FIISC WAS THE SURVIVING ENTITY.THEREAFTER, FIISC REORGANIZED AS A DELAWARE LIMITED LIABILITYCOMPANY AND WAS RENAMED FIDELITY DISTRIBUTORS COMPANY LLC(FDC LLC). THE RESTRUCTURING DID NOT RESULT IN A CHANGE INOWNERSHIP OR CONTROL.
RegistrationsThis section provides information about the regulators (Securities and Exchange Commission (SEC), self-regulatoryorganizations (SROs), and U.S. states and territories) with which the brokerage firm is currently registered andlicensed, the date the license became effective, and certain information about the firm's SEC registration.
This firm is currently registered with the SEC, 1 SRO and 52 U.S. states and territories.
SEC Registration Questions
This firm is registered with the SEC as:
A broker-dealer:
A broker-dealer and government securities broker or dealer:
A government securities broker or dealer only:
This firm has ceased activity as a government securities broker or dealer:
Yes
No
No
No
Federal Regulator Status Date Effective
SEC Approved 12/27/1985
Self-Regulatory Organization Status Date Effective
Types of BusinessThis section provides the types of business, including non-securities business, the brokerage firm is engaged in orexpects to be engaged in.
Other Types of Business
This firm does not effect transactions in commodities, commodity futures, or commodity options.This firm does not engage in other non-securities business.
Non-Securities Business Description:
This firm currently conducts 1 type of business.
Types of Business
Other - FIDELITY DISTRIBUTORS COMPANY LLC ("FDC") IS THE PRINCIPAL UNDERWRITER AND GENERALDISTRIBUTOR OF SHARES IN THE FIDELITY FAMILY OF REGISTERED, OPEN-END MANAGEMENTINVESTMENT COMPANIES AND FIDELITY EXCHANGE-TRADED FUNDS. FDC MARKETS PRODUCTS TOCERTAIN THIRD-PARTY FINANCIAL INTERMEDIARIES AND INSTITUTIONAL INVESTORS. ON BEHALF OFCERTAIN INVESTMENT ADVISORS, FDC ALSO SOLICITS INTERMEDIARIES, INSTITUTIONS ANDGOVERNMENTAL ENTITIES INTERESTED IN PURCHASING INVESTMENT ADVISORY SERVICES DIRECTLY.
This firm does have books or records maintained by a third party.
Name: MICROSOFT CORPORATION
Business Address: ONE MICROSOFT WAYREDMON, WA 98052
Effective Date: 06/02/2020
Description: CLOUD SERVICES OFFERED THROUGH MICROSOFT'S ONLINE SERVICESUBSCRIPTIONS FOR EXCHANGE ONLINE,SHAREPOINT ONLINE, ONE DRIVE BUSINESS, TEAMS AND IMMUTABLESTORAGE FOR AZURE BLOBS("SERVICES")
Name: AMAZON WEB SERVICES
Business Address: 410 TERRY AVENUE NORTHSEATTLE, WA 98109
Effective Date: 06/02/2020
Description: CLOUD SERVICES OFFERED THROUGH AMAZON SIMPLE STORAGESERVICE("S3")
Name: ALLEGO INC.
Business Address: 117 KENDRICK STNEEDHAM, MA 02494
Effective Date: 02/13/2018
Description: ALLEGO INC. PROVIDES FIDELITY DISTRIBUTORS COMPANY LLC WITHCERTAIN SOFTWARE THAT CAPTURES ANDARCHIVES INFORMATION OR COMMUNICATIONS THAT MAYCONSTITUTE A CLIENT "RECORD" UNDER APPLICABLEREGULATIONS.
Name: GLOBAL RELAY COMMUNICATIONS INC.
Business Address: 220 CAMBIE STREET, 2ND FLOORVANCOUVER, CANADA V6B 2M9
Effective Date: 10/05/2019
Description: GLOBAL RELAY RETAINS AND STORES E-COMMUNICATIONS
Name: FIDELITY GLOBAL BROKERAGE GROUP, INC.
Business Address: 245 SUMMER STREETBOSTON, MA 02210
This firm does not have accounts, funds, or securities maintained by a third party.
This firm does not have customer accounts, funds, or securities maintained by a third party.
This firm does not have individuals who control its management or policies through agreement.
This firm does not have individuals who wholly or partly finance the firm's business.
Control Persons/Financing
Effective Date: 12/08/1994
Description: FIDELITY DISTRIBUTORS COMPANY LLC IS A WHOLLY-OWNEDSUBSIDIARY OF FIDELITY GLOBAL BROKERAGE GROUP, INC. WHICHMAY PERFORM THE MAINTENANCE AND PREPARATION OFAPPLICANT'S REQUIRED BOOKS AND RECORDS.
Name: IRON MOUNTAIN
Business Address: 745 ATLANTIC AVENUEBOSTON, MA 02111
Effective Date: 07/21/1986
Description: MAINTAINS LEGACY PAPER RECORDS.
Name: FMR LLC
Business Address: 245 SUMMER STMZ F7BBOSTON, MA 02210
Effective Date: 12/27/1985
Description: FMR LLC AND/OR CERTAIN OF FMR LLC'S US BASED AFFILIATES MAYMAINTAIN HARDCOPY OR ELECTRONIC RECORDS ON BEHALF OFFIDELITY DISTRIBUTORS COMPANY LLC.
Organization AffiliatesThis section provides information on control relationships the firm has with other firms in the securities, investmentadvisory, or banking business.
This firm is, directly or indirectly:
· in control of· controlled by· or under common control withthe following partnerships, corporations, or other organizations engaged in the securities or investmentadvisory business.
Yes
No
No
10/31/2021
245 SUMMER STREETBOSTON, MA 02210
315088
FIDELITY DIVERSIFYING SOLUTIONS LLC is under common control with the firm.
FIDELITY DIVERSIFYING SOLUTIONS LLC IS A WHOLLY-OWNEDSUBSIDIARY OF FMR LLC. FMR LLC IS THE PARENTCOMPANY OF FIDELITY GLOBAL BROKERAGE GROUP, INC. FIDELITYDISTRIBUTORS COMPANY LLC IS A WHOLLY-OWNED SUBSIDIARY OF FIDELITY GLOBAL BROKERAGE GROUP, INC.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
CRD #:
No
Yes
No
11/24/2020
499 WASHINGTON BLVDJERSEY CITY, NJ 07310
308213
DIGITAL BROKERAGE SERVICES LLC is under common control with the firm.
DIGITAL BROKERAGE SERVICES LLC IS A WHOLLY-OWNED SUBSIDIARY OFFIDELITY GLOBAL BROKERAGE GROUP, INC. FIDELITY DISTRIBUTORSCOMPANY LLC IS ALSO A WHOLLY-OWNED SUBSIDIARY OF FIDELITYGLOBAL BROKERAGE GROUP, INC.
Description:
Yes
No
No
09/20/2019
245 SUMMER STREETBOSTON, MA 02210
301896
FIDELITY INSTITUTIONAL WEALTH ADVISER LLC is under common control with the firm.
FIDELITY INSTITUTIONAL WEALTH ADVISER LLC IS A WHOLLY-OWNEDSUBSIDIARY OF FMR LLC. FMR LLC IS THE PARENT COMPANY OF FIDELITYGLOBAL BROKERAGE GROUP, INC. FIDELITY DISTRIBUTORS COMPANY LLCIS A WHOLLY-OWNED SUBSIDIARY OF FIDELITY GLOBAL BROKERAGEGROUP, INC.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
CRD #:
No
Yes
No
06/20/2019
155 SEAPORT BLVDBOSTON, MA 02210
299736
FIDELITY PRIME FINANCING is under common control with the firm.
FIDELITY PRIME FINANCING LLC IS A WHOLLY-OWNED SUBSIDIARY OFFIDELITY GLOBAL BROKERAGE GROUP, INC.FIDELITY DISTRIBUTORS COMPANY LLC IS ALSO A WHOLLY-OWNEDSUBSIDIARY OF FIDELITY GLOBAL BROKERAGEGROUP, INC.
FIDELITY PRIME FINANCING LLC IS A WHOLLY-OWNED SUBSIDIARY OFFIDELITY GLOBAL BROKERAGE GROUP, INC.FIDELITY DISTRIBUTORS COMPANY LLC IS ALSO A WHOLLY-OWNEDSUBSIDIARY OF FIDELITY GLOBAL BROKERAGEGROUP, INC.
Yes
No
No
11/13/2017
245 SUMMER STREETV2ABOSTON, MA 02210
288590
FIDELITY PERSONAL AND WORKPLACE ADVISORS is under common control with the firm.
FIDELITY PERSONAL AND WORKPLACE ADVISORS LLC IS A WHOLLY-OWNED SUBSIDIARY OF FIDELITY ADVISORY HOLDINGS LLC. FIDELITYADVISORY HOLDINGS LLC IS A WHOLLY -OWNED SUBSIDIARY OF FMR LLC.FMR LLC IS THE PARENT COMPANY OF FIDELITY GLOBAL BROKERAGEGROUP, INC. FIDELITY DISTRIBUTORS COMPANY LLC IS A WHOLLY-OWNEDSUBSIDIARY OF FIDELITY GLOBAL BROKERAGE GROUP, INC.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
CRD #:
No
Yes
No
12/26/2014
157 SEAPORT BLVDBOSTON, MA 02210
171752
LUMINEX TRADING & ANALYTICS LLC is under common control with the firm.
LUMINEX TRADING & ANALYTICS LLC IS A REGISTERED BROKER-DEALERTHAT IS A WHOLLY-OWNED SUBSIDIARY OF FMR SAKURA HOLDINGS, INC.FMR SAKURA HOLDINGS, INC. IS A WHOLLY-OWNED SUBSIDIARY OF FMRLLC. FMR LLC IS THE PARENT COMPANY OF FIDELITY GLOBALBROKERAGE GROUP, INC. FIDELITY DISTRIBUTORS COMPANY LLC IS AWHOLLY-OWNED SUBSIDIARY OF FIDELITY GLOBAL BROKERAGE GROUP,INC.
LUMINEX TRADING & ANALYTICS LLC IS A REGISTERED BROKER-DEALERTHAT IS A WHOLLY-OWNED SUBSIDIARY OF FMR SAKURA HOLDINGS, INC.FMR SAKURA HOLDINGS, INC. IS A WHOLLY-OWNED SUBSIDIARY OF FMRLLC. FMR LLC IS THE PARENT COMPANY OF FIDELITY GLOBALBROKERAGE GROUP, INC. FIDELITY DISTRIBUTORS COMPANY LLC IS AWHOLLY-OWNED SUBSIDIARY OF FIDELITY GLOBAL BROKERAGE GROUP,INC.
Yes
No
No
03/01/2014
255 STATE STREETBOSTON, MA 02109
168741
IMPRESA MANAGEMENT LLC is under common control with the firm.
IMPRESA MANAGEMENT LLC IS AN INDEPENDENTLY OWNED REGISTEREDINVESTMENT ADVISER TO CERTAIN EMPLOYEES' SECURITIES COMPANIESAND PRIVATE FUNDS. THE OWNERS OF IMPRESA MANAGEMENT LLCINCLUDE VARIOUS SHAREHOLDERS OF FMR LLC WHO CONTROL FMR LLC.FMR LLC IS THE PARENT COMPANY OF FIDELITY GLOBAL BROKERAGEGROUP, INC. FIDELITY DISTRIBUTORS COMPANY LLC IS A WHOLLY-OWNEDSUBSIDIARY OF FIDELITY GLOBAL BROKERAGE GROUP, INC.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
CRD #:
Yes
No
INDIA
Yes
05/17/2002
PINEHURST EMBASSY GOLF LINKS BUSINESS PARKOFF. INTERMEDIATE RING ROAD, KORAMANGALABANGALORE, INDIA 560036
FIDELITY BUSINESS SERVICES INDIA PRIVATE LIMITED is under common control with the firm.
FIDELITY BUSINESS SERVICES INDIA PRIVATE LIMITED IS A MAJORITY-OWNED SUBSIDIARY OF FIDELITY INVESTMENTS SYSTEMS INDIA, INC.,WHICH IS IN TURN A WHOLLY-OWNED SUBSIDIARY OF FMR LLC. FMR LLCIS THE PARENT COMPANY OF FIDELITY GLOBAL BROKERAGE GROUP, INC.FIDELITY DISTRIBUTORS COMPANY LLC IS A WHOLLY-OWNED SUBSIDIARYOF FIDELITY GLOBAL BROKERAGE GROUP, INC.
FIDELITY BUSINESS SERVICES INDIA PRIVATE LIMITED IS A MAJORITY-OWNED SUBSIDIARY OF FIDELITY INVESTMENTS SYSTEMS INDIA, INC.,WHICH IS IN TURN A WHOLLY-OWNED SUBSIDIARY OF FMR LLC. FMR LLCIS THE PARENT COMPANY OF FIDELITY GLOBAL BROKERAGE GROUP, INC.FIDELITY DISTRIBUTORS COMPANY LLC IS A WHOLLY-OWNED SUBSIDIARYOF FIDELITY GLOBAL BROKERAGE GROUP, INC.
Yes
No
No
05/30/2000
245 SUMMER STREETMZ F7BBOSTON, MA 02210
FIDELITY PERSONAL TRUST COMPANY, FSB is under common control with the firm.
FIDELITY PERSONAL TRUST COMPANY, FSB IS A WHOLLY-OWNEDSUBSIDIARY OF FIDELITY THRIFT HOLDING COMPANY, INC. FIDELITYTHRIFT HOLDING COMPANY, INC., IS A WHOLLY-OWNED SUBSIDIARY OFFMR LLC. FMR LLC IS THE PARENT COMPANY OF FIDELITY GLOBALBROKERAGE GROUP, INC. FIDELITY DISTRIBUTORS COMPANY LLC IS AWHOLLY-OWNED SUBSIDIARY OF FIDELITY GLOBAL BROKERAGE GROUP,INC.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
Yes
No
No
11/16/2007
KAMIYACHO PRIME PLACE AT 1-17TORANOMON-4-CHOMEMINATO-KU, TOKYO, JAPAN
148239
FIDELITY MANAGEMENT & RESEARCH (JAPAN) LIMITED is under common control with the firm.
FIDELITY MANAGEMENT & RESEARCH (JAPAN) LIMITED IS A WHOLLY-OWNED SUBSIDIARY OF FIDELITY MANAGEMENT & RESEARCH COMPANYLLC. FIDELITY MANAGEMENT & RESEARCH COMPANY LLC IS A WHOLLY-OWNED SUBSIDIARY OF FMR LLC. FMR LLC IS THE PARENT COMPANY OFFIDELITY GLOBAL BROKERAGE GROUP, INC. FIDELITY DISTRIBUTORSCOMPANY LLC IS A WHOLLY-OWNED SUBSIDIARY OF FIDELITY GLOBALBROKERAGE GROUP, INC.
FIDELITY MANAGEMENT & RESEARCH (JAPAN) LIMITED IS A WHOLLY-OWNED SUBSIDIARY OF FIDELITY MANAGEMENT & RESEARCH COMPANYLLC. FIDELITY MANAGEMENT & RESEARCH COMPANY LLC IS A WHOLLY-OWNED SUBSIDIARY OF FMR LLC. FMR LLC IS THE PARENT COMPANY OFFIDELITY GLOBAL BROKERAGE GROUP, INC. FIDELITY DISTRIBUTORSCOMPANY LLC IS A WHOLLY-OWNED SUBSIDIARY OF FIDELITY GLOBALBROKERAGE GROUP, INC.
Yes
No
HONG KONG
Yes
10/12/2007
FLOOR 19, 41 CONNAUGHT ROAD CENTRALHONG KONG, HONG KONG
148045
FIDELITY MANAGEMENT & RESEARCH (HONG KONG) LIMITED is under common control with the firm.
FIDELITY MANAGEMENT & RESEARCH (HONG KONG) LIMITED IS A WHOLLY-OWNED SUBSIDIARY OF FIDELITY MANAGEMENT & RESEARCH COMPANYLLC. FIDELITY MANAGEMENT & RESEARCH COMPANY LLC IS A WHOLLY-OWNED SUBSIDIARY OF FMR LLC. FMR LLC IS THE PARENT COMPANY OFFIDELITY GLOBAL BROKERAGE GROUP, INC. FIDELITY DISTRIBUTORSCOMPANY LLC IS A WHOLLY-OWNED SUBSIDIARY OF FIDELITY GLOBALBROKERAGE GROUP, INC.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
CRD #:
No
Yes
CANADA
Yes
09/01/2009
401 BAY STREETSUITE 2910TORONTO, ONTARIO, CANADA M5H2Y4
FIDELITY CLEARING CANADA ULC is under common control with the firm.
FIDELITY CLEARING CANADA ULC IS A WHOLLY-OWNED SUBSIDIARY OFBLUE JAY LUX 2 SARL, WHICH IS IN TURN WHOLLY-OWNED BY 483 BAYSTREET HOLDINGS LP, A JOINT VENTURE BETWEEN FIDELITY CANADAINVESTORS LLC AND FIL LIMITED. FIDELITY CANADA INVESTORS LLC ISOWNED BY THE SHAREHOLDERS WHO CONTROL FMR LLC. FMR LLC ISTHE PARENT COMPANY OF FIDELITY GLOBAL BROKERAGE GROUP, INC.,OF WHICH FIDELITY DISTRIBUTORS COMPANY LLC IS A WHOLLY-OWNEDSUBSIDIARY.
FIDELITY CLEARING CANADA ULC IS A WHOLLY-OWNED SUBSIDIARY OFBLUE JAY LUX 2 SARL, WHICH IS IN TURN WHOLLY-OWNED BY 483 BAYSTREET HOLDINGS LP, A JOINT VENTURE BETWEEN FIDELITY CANADAINVESTORS LLC AND FIL LIMITED. FIDELITY CANADA INVESTORS LLC ISOWNED BY THE SHAREHOLDERS WHO CONTROL FMR LLC. FMR LLC ISTHE PARENT COMPANY OF FIDELITY GLOBAL BROKERAGE GROUP, INC.,OF WHICH FIDELITY DISTRIBUTORS COMPANY LLC IS A WHOLLY-OWNEDSUBSIDIARY.
Yes
No
CANADA
Yes
07/23/2007
483 BAY STREETSUITE 200TORONTO, ONTARIO M5G 2N7
FIDELITY (CANADA) ASSET MANAGEMENT ULC is under common control with the firm.
FIDELITY (CANADA) ASSET MANAGEMENT ULC IS A WHOLLY-OWNEDSUBSIDIARY OF BLUE JAY LUX 2 SARL, WHICH IS IN TURN WHOLLY OWNEDBY 483 BAY STREET HOLDINGS LP, A JOINT VENTURE BETWEEN FIDELITYCANADA INVESTORS LLC AND FIL LIMITED. FIDELITY CANADA INVESTORSLLC IS OWNED BY THE SHAREHOLDERS WHO CONTROL FMR LLC. FMRLLC IS THE PARENT COMPANY OF FIDELITY GLOBAL BROKERAGE GROUP,INC., OF WHICH FIDELITY DISTRIBUTORS COMPANY LLC IS A WHOLLY-OWNED SUBSIDIARY.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
Yes
No
No
10/17/2005
245 SUMMER STREETMZ F7BBOSTON, MA 02210
FIDELITY INSTITUTIONAL ASSET MANAGEMENT TRUST COMPANY is under common control with the firm.
FIDELITY INSTITUTIONAL ASSET MANAGEMENT TRUST COMPANY ISWHOLLY-OWNED BY FIAM HOLDINGS LLC. FIAM HOLDINGS LLC IS AWHOLLY-OWNED SUBSIDIARY OF FMR LLC. FMR LLC IS THE PARENTCOMPANY OF FIDELITY GLOBAL BROKERAGE GROUP, INC. FIDELITYDISTRIBUTORS COMPANY LLC IS A WHOLLY-OWNED SUBSIDIARY OFFIDELITY GLOBAL BROKERAGE GROUP, INC.
Organization Affiliates (continued)FIDELITY INSTITUTIONAL ASSET MANAGEMENT TRUST COMPANY ISWHOLLY-OWNED BY FIAM HOLDINGS LLC. FIAM HOLDINGS LLC IS AWHOLLY-OWNED SUBSIDIARY OF FMR LLC. FMR LLC IS THE PARENTCOMPANY OF FIDELITY GLOBAL BROKERAGE GROUP, INC. FIDELITYDISTRIBUTORS COMPANY LLC IS A WHOLLY-OWNED SUBSIDIARY OFFIDELITY GLOBAL BROKERAGE GROUP, INC.
Yes
No
No
10/08/2004
900 SALEM STREETSMITHFIELD, RI 02917
133196
FIAM LLC is under common control with the firm.
FIAM LLC IS A WHOLLY-OWNED SUBSIDIARY OF FIAM HOLDINGS LLC. FIAMHOLDINGS LLC IS A WHOLLY-OWNED SUBSIDIARY OF FMR LLC. FMR LLCIS THE PARENT COMPANY OF FIDELITY GLOBAL BROKERAGE GROUP, INC.FIDELITY DISTRIBUTORS COMPANY LLC IS A WHOLLY-OWNED SUBSIDIARYOF FIDELITY GLOBAL BROKERAGE GROUP, INC.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
CRD #:
Yes
No
No
06/13/2001
245 SUMMER STREETMZ F7BBOSTON, MA 02210
115324
BALLYROCK INVESTMENT ADVISORS LLC is under common control with the firm.
BALLYROCK INVESTMENT ADVISORS LLC IS A WHOLLY-OWNEDSUBSIDIARY OF FMR LLC. FMR LLC IS THE PARENT COMPANY OF FIDELITYGLOBAL BROKERAGE GROUP, INC. FIDELITY DISTRIBUTORS COMPANY LLCIS A WHOLLY-OWNED SUBSIDIARY OF FIDELITY GLOBAL BROKERAGEGROUP, INC.
BALLYROCK INVESTMENT ADVISORS LLC IS A WHOLLY-OWNEDSUBSIDIARY OF FMR LLC. FMR LLC IS THE PARENT COMPANY OF FIDELITYGLOBAL BROKERAGE GROUP, INC. FIDELITY DISTRIBUTORS COMPANY LLCIS A WHOLLY-OWNED SUBSIDIARY OF FIDELITY GLOBAL BROKERAGEGROUP, INC.
No
Yes
No
06/08/2000
900 SALEM STREETSMITHFIELD, RI 02917
7784
FIDELITY BROKERAGE SERVICES LLC is under common control with the firm.
FIDELITY BROKERAGE SERVICES LLC IS A WHOLLY-OWNED SUBSIDIARYOF FIDELITY GLOBAL BROKERAGE GROUP, INC. FIDELITY DISTRIBUTORSCOMPANY LLC IS ALSO A WHOLLY-OWNED SUBSIDIARY OF FIDELITYGLOBAL BROKERAGE GROUP, INC.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
CRD #:
No
Yes
No
12/08/1994
245 SUMMER STREETMZ F7BBOSTON, MA 02210
FIDELITY GLOBAL BROKERAGE GROUP, INC. is under common control with the firm.
FIDELITY DISTRIBUTORS COMPANY LLC IS A WHOLLY-OWNED SUBSIDIARYOF FIDELITY GLOBAL BROKERAGE GROUP, INC.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
02/13/1987
483 BAY STSUITE 200TORONTO, ONTARIO, CANADA M5G 2N7
FIDELITY INVESTMENTS CANADA ULC is under common control with the firm.
FIDELITY INVESTMENTS CANADA ULC IS A WHOLLY-OWNED SUBSIDIARYOF FIC HOLDINGS ULC, WHO IS WHOLLY-OWNED BY BLUE JAY LUX 1 SARL.BLUE JAY LUX 1 SARL IS WHOLLY-OWNED BY 483A BAY STREET HOLDINGSLP, A JOINT VENTURE BETWEEN FIDELITY CANADA INVESTORS LLC ANDFIL LIMITED. FIDELITY CANADA INVESTORS LLC IS OWNED BYSHAREHOLDERS WHO CONTROL FMR LLC. FMR LLC IS THE PARENTCOMPANY OF FIDELITY GLOBAL BROKERAGE GROUP, INC., OF WHICHFIDELITY DISTRIBUTORS COMPANY LLC IS A WHOLLY-OWNED SUBSIDIARY.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Yes
No
No
07/14/1986
1 ST. MARTINS LE GRANDLONDON, ENGLAND EC1A4AS
108273
FMR INVESTMENT MANAGEMENT (UK) LIMITED is under common control with the firm.
FMR INVESTMENT MANAGEMENT (UK) LIMITED IS A WHOLLY-OWNEDSUBSIDIARY FIDELITY MANAGEMENT & RESEARCH COMPANY LLC.FIDELITY MANAGEMENT & RESEARCH COMPANY LLC IS A WHOLLY-OWNEDSUBSIDIARY OF FMR LLC. FMR LLC IS THE PARENT COMPANY OF FIDELITYGLOBAL BROKERAGE GROUP, INC. FIDELITY DISTRIBUTORS COMPANY LLCIS A WHOLLY-OWNED SUBSIDIARY OF FIDELITY GLOBAL BROKERAGEGROUP, INC.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
CRD #:
245 SUMMER STREETMZ F7BBOSTON, MA 02210
108281
FIDELITY MANAGEMENT & RESEARCH COMPANY is under common control with the firm.
FIDELITY MANAGEMENT & RESEARCH COMPANY LLC IS A WHOLLY-OWNEDSUBSIDIARY OF FMR LLC. FMR LLC IS THE PARENT COMPANY OF FIDELITYGLOBAL BROKERAGE GROUP, INC. FIDELITY DISTRIBUTORS COMPANY LLCIS A WHOLLY-OWNED SUBSIDIARY OF FIDELITY GLOBAL BROKERAGEGROUP, INC.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Yes
No
No
03/05/1981
245 SUMMER STREETMZ F7BBOSTON, MA 02210
FIDELITY MANAGEMENT TRUST COMPANY is under common control with the firm.
FIDELITY MANAGEMENT TRUST COMPANY IS A WHOLLY-OWNEDSUBSIDIARY OF FMR LLC. FMR LLC IS THE PARENT COMPANY OF FIDELITYGLOBAL BROKERAGE GROUP, INC. FIDELITY DISTRIBUTORS COMPANY LLCIS A WHOLLY-OWNED SUBSIDIARY OF FIDELITY GLOBAL BROKERAGEGROUP, INC.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
No
06/13/1977
245 SUMMER STREETMZ F7BBOSTON, MA 02210
104555
STRATEGIC ADVISERS LLC is under common control with the firm.
STRATEGIC ADVISERS LLC IS A WHOLLY-OWNED SUBSIDIARY OF FIDELITYADVISORY HOLDINGS LLC. FIDELITY ADVISORY HOLDINGS LLC IS AWHOLLY-OWNED SUBSIDIARY OF FMR LLC. FMR LLC IS THE PARENTCOMPANY OF FIDELITY GLOBAL BROKERAGE GROUP, INC. FIDELITYDISTRIBUTORS COMPANY LLC IS A WHOLLY-OWNED SUBSIDIARY OFFIDELITY GLOBAL BROKERAGE GROUP, INC.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Yes
Yes
No
06/08/2000
245 SUMMER STREETBOSTON, MA 02210
13041
NATIONAL FINANCIAL SERVICES LLC is under common control with the firm.
NATIONAL FINANCIAL SERVICES LLC IS A WHOLLY-OWNED SUBSIDIARY OFFIDELITY GLOBAL BROKERAGE GROUP, INC. FIDELITY DISTRIBUTORSCOMPANY LLC IS ALSO A WHOLLY-OWNED SUBSIDIARY OF FIDELITYGLOBAL BROKERAGE GROUP, INC.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
CRD #:
This firm is not directly or indirectly, controlled by the following:
· bank holding company· national bank· state member bank of the Federal Reserve System· state non-member bank· savings bank or association· credit union· or foreign bank
All firms registered to sell securities or provide investment advice are required to disclose regulatory actions, criminal orcivil judicial proceedings, and certain financial matters in which the firm or one of its control affiliates has been involved.For your convenience, below is a matrix of the number and status of disclosure events involving this brokerage firm orone of its control affiliates. Further information regarding these events can be found in the subsequent pages of thisreport.
What you should know about reported disclosure events:
1. BrokerCheck provides details for any disclosure event that was reported in CRD. It also includessummary information regarding FINRA arbitration awards in cases where the brokerage firm wasnamed as a respondent.
2. Certain thresholds must be met before an event is reported to CRD, for example: o A law enforcement agency must file formal charges before a brokerage firm is required to disclose a
particular criminal event.3. Disclosure events in BrokerCheck reports come from different sources:
o Disclosure events for this brokerage firm were reported by the firm and/or regulators. When the firmand a regulator report information for the same event, both versions of the event will appear in theBrokerCheck report. The different versions will be separated by a solid line with the reporting sourcelabeled.
4. There are different statuses and dispositions for disclosure events: o A disclosure event may have a status of pending, on appeal, or final.
§ A "pending" event involves allegations that have not been proven or formally adjudicated.§ An event that is "on appeal" involves allegations that have been adjudicated but are currently
being appealed.§ A "final" event has been concluded and its resolution is not subject to change.
o A final event generally has a disposition of adjudicated, settled or otherwise resolved.§ An "adjudicated" matter includes a disposition by (1) a court of law in a criminal or civil matter,
or (2) an administrative panel in an action brought by a regulator that is contested by the partycharged with some alleged wrongdoing.
§ A "settled" matter generally involves an agreement by the parties to resolve the matter.Please note that firms may choose to settle customer disputes or regulatory matters forbusiness or other reasons.
§ A "resolved" matter usually involves no payment to the customer and no finding ofwrongdoing on the part of the individual broker. Such matters generally involve customerdisputes.
5. You may wish to contact the brokerage firm to obtain further information regarding any of thedisclosure events contained in this BrokerCheck report.
Regulatory - Final
This type of disclosure event involves (1) a final, formal proceeding initiated by a regulatory authority (e.g., a statesecurities agency, self-regulatory organization, federal regulator such as the U.S. Securities and Exchange Commission,foreign financial regulatory body) for a violation of investment-related rules or regulations; or (2) a revocation orsuspension of the authority of a brokerage firm or its control affiliate to act as an attorney, accountant or federalcontractor.
Disclosure 1 of 3
Reporting Source: Regulator
Allegations: FINRA RULE 2010, NASD RULES 2110, 2210, 2211, 2211(B)(1)(B), 3010(A) AND(B) - FIDELITY INVESTMENTS INSTITUTIONAL SERVICES COMPANY, INC.MARKETED, SOLD AND/OR WHOLESALED SHARES IN AN INCOME MUTUALFUND AND IN CONNECTION WITH SUCH ACTIVITIES CREATEDADVERTISING, TRAINING AND/OR WHOLESALING MATERIALS FOR THEFUND WHICH WERE PROVIDED TO PUBLIC CUSTOMERS, RETAIL SALESFIRMS, USED INTERNALLY OR USED FOR INSTITUTIONAL PURPOSEDWITHIN THE SELLING INTERMEDIARIES. THE MUTUAL FUND INCLUDEDSECURITIES BACKED BY, AMONG OTHER THINGS, SUB-PRIMEMORTGAGES AND CREDIT CARD AND AUTO LOAN RECEIVABLES. AFTERTHE SUB-PRIME CRISIS BEGAN IN 2007 AND NEGATIVELY AFFECTED THEFINANCIAL MARKETS, THE FUND'S NET ASSET VALUE (NAV) BEGAN TODECREASE AND WAS NO LONGER AN APPROPRIATE INVESTMENT FORCONSERVATIVE INVESTORS SEEKING TO PRESERVE CAPITAL. THE FIRMDISTRIBUTED SALES MATERIALS THAT WERE UNBALANCED ANDMISLEADING, CONTAINED UNWARRANTED STATEMENTS AND FAILED TOPROVIDE A SOUND BASIS BY WHICH TO EVALUATE THE RISKS OF THEFUND. THE SALES MATERIALS FAILED TO PROVIDE A SOUND BASIS FOREVALUATING RISKS RELATING TO THE FUND; CONTINUED TO STATE THATTHE FUND'S PORTFOLIO HOLDINGS WERE OF HIGH CREDIT QUALITYWHEN THEY WERE NOT; FAILED TO TIMELY UPDATE THE SALESMATERIALS TO ACCURATELY PORTRAY THE NEGATIVE IMPACT OF THESUB-PRIME CRISIS ON THE VALUE OF THE FUND'S PORTFOLIOINVESTMENTS AND SHARES; MISCHARACTERIZED THE FUND AS A SHORT-TERM SAVINGS OPTION APPROPRIATE FOR CUSTOMERS WHO SOUGHTTO INVEST FUNDS NEEDED TO PURCHASE A HOME OR CAR; ANDCONTAINED UNQUALIFIED PROMISES OF POSITIVE FUTUREPERFORMANCE. THE FIRM ALSO DISTRIBUTED CERTAIN OF THESEMATERIALS TO THE SELLING INTERMEDIARIES. THE FIRM HADPROCEDURES IN PLACE WITH RESPECT TO THE REVIEW AND APPROVALOF SALES MATERIALS BUT THE PROCEDURES WERE NOT REASONABLYDESIGNED TO ACHIEVE AND MONITOR COMPLIANCE WITH APPLICABLELAWS, REGULATIONS AND RULES. THE PROCEDURES GENERALLYREQUIRED THE MATERIALS BE APPROVED BY A REGISTERED PRINCIPALPRIOR TO USE BUT DID NOT CONTAIN AN APPROPRIATE SYSTEM OFFOLLOW-UP AND REVIEW THAT WAS REASONABLY CALCULATED TOENSURE THE REVIEW WAS ADEQUATE. THE FIRM'S SPOTLIGHT REPORTSWERE CREATED AND USED INTERNALLY; THE FIRM HAD SUPERVISORYPROCEDURES CONCERNING SUCH DOCUMENTS THAT DID NOT REQUIRETHAT THEY BE REVIEWED BY A REGISTERED PRINCIPAL PRIOR TO USEBUT THE PROCEDURES DID NOT PROVIDE FOR ADEQUATE SURVEILLANCEAND FOLLOW-UP TO ENSURE THAT WERE BEING IMPLEMENTED ANDADHERED TO. AS A RESULT, VIOLATIVE SALES MATERIALS WERE CREATEDAND DISTRIBUTED DESPITE THE FACT THAT, PRIOR TO AND DURING THERELEVANT PERIOD, FINRA HAD ISSUED GUIDANCE TO ITS MEMBERS THATHIGHLIGHTED THE RISKS ASSOCIATED WITH BONDS, BOND FUNDS ANDSTRUCTURED PRODUCTS AND DETAILED SUPERVISORYRESPONSIBILITIES OF ITS MEMBERS WITH RESPECT THERETO. AS ARESULT, THE SALES MATERIALS FAILED TO PROVIDE AN ACCURATE ANDBALANCED PRESENTATION CONCERNING THE NATURE, HOLDINGS ANDRISKS OF AN INVESTMENT IN THE FUND.
Allegations: FINRA RULE 2010, NASD RULES 2110, 2210, 2211, 2211(B)(1)(B), 3010(A) AND(B) - FIDELITY INVESTMENTS INSTITUTIONAL SERVICES COMPANY, INC.MARKETED, SOLD AND/OR WHOLESALED SHARES IN AN INCOME MUTUALFUND AND IN CONNECTION WITH SUCH ACTIVITIES CREATEDADVERTISING, TRAINING AND/OR WHOLESALING MATERIALS FOR THEFUND WHICH WERE PROVIDED TO PUBLIC CUSTOMERS, RETAIL SALESFIRMS, USED INTERNALLY OR USED FOR INSTITUTIONAL PURPOSEDWITHIN THE SELLING INTERMEDIARIES. THE MUTUAL FUND INCLUDEDSECURITIES BACKED BY, AMONG OTHER THINGS, SUB-PRIMEMORTGAGES AND CREDIT CARD AND AUTO LOAN RECEIVABLES. AFTERTHE SUB-PRIME CRISIS BEGAN IN 2007 AND NEGATIVELY AFFECTED THEFINANCIAL MARKETS, THE FUND'S NET ASSET VALUE (NAV) BEGAN TODECREASE AND WAS NO LONGER AN APPROPRIATE INVESTMENT FORCONSERVATIVE INVESTORS SEEKING TO PRESERVE CAPITAL. THE FIRMDISTRIBUTED SALES MATERIALS THAT WERE UNBALANCED ANDMISLEADING, CONTAINED UNWARRANTED STATEMENTS AND FAILED TOPROVIDE A SOUND BASIS BY WHICH TO EVALUATE THE RISKS OF THEFUND. THE SALES MATERIALS FAILED TO PROVIDE A SOUND BASIS FOREVALUATING RISKS RELATING TO THE FUND; CONTINUED TO STATE THATTHE FUND'S PORTFOLIO HOLDINGS WERE OF HIGH CREDIT QUALITYWHEN THEY WERE NOT; FAILED TO TIMELY UPDATE THE SALESMATERIALS TO ACCURATELY PORTRAY THE NEGATIVE IMPACT OF THESUB-PRIME CRISIS ON THE VALUE OF THE FUND'S PORTFOLIOINVESTMENTS AND SHARES; MISCHARACTERIZED THE FUND AS A SHORT-TERM SAVINGS OPTION APPROPRIATE FOR CUSTOMERS WHO SOUGHTTO INVEST FUNDS NEEDED TO PURCHASE A HOME OR CAR; ANDCONTAINED UNQUALIFIED PROMISES OF POSITIVE FUTUREPERFORMANCE. THE FIRM ALSO DISTRIBUTED CERTAIN OF THESEMATERIALS TO THE SELLING INTERMEDIARIES. THE FIRM HADPROCEDURES IN PLACE WITH RESPECT TO THE REVIEW AND APPROVALOF SALES MATERIALS BUT THE PROCEDURES WERE NOT REASONABLYDESIGNED TO ACHIEVE AND MONITOR COMPLIANCE WITH APPLICABLELAWS, REGULATIONS AND RULES. THE PROCEDURES GENERALLYREQUIRED THE MATERIALS BE APPROVED BY A REGISTERED PRINCIPALPRIOR TO USE BUT DID NOT CONTAIN AN APPROPRIATE SYSTEM OFFOLLOW-UP AND REVIEW THAT WAS REASONABLY CALCULATED TOENSURE THE REVIEW WAS ADEQUATE. THE FIRM'S SPOTLIGHT REPORTSWERE CREATED AND USED INTERNALLY; THE FIRM HAD SUPERVISORYPROCEDURES CONCERNING SUCH DOCUMENTS THAT DID NOT REQUIRETHAT THEY BE REVIEWED BY A REGISTERED PRINCIPAL PRIOR TO USEBUT THE PROCEDURES DID NOT PROVIDE FOR ADEQUATE SURVEILLANCEAND FOLLOW-UP TO ENSURE THAT WERE BEING IMPLEMENTED ANDADHERED TO. AS A RESULT, VIOLATIVE SALES MATERIALS WERE CREATEDAND DISTRIBUTED DESPITE THE FACT THAT, PRIOR TO AND DURING THERELEVANT PERIOD, FINRA HAD ISSUED GUIDANCE TO ITS MEMBERS THATHIGHLIGHTED THE RISKS ASSOCIATED WITH BONDS, BOND FUNDS ANDSTRUCTURED PRODUCTS AND DETAILED SUPERVISORYRESPONSIBILITIES OF ITS MEMBERS WITH RESPECT THERETO. AS ARESULT, THE SALES MATERIALS FAILED TO PROVIDE AN ACCURATE ANDBALANCED PRESENTATION CONCERNING THE NATURE, HOLDINGS ANDRISKS OF AN INVESTMENT IN THE FUND.
FINRA RULE 2010, NASD RULES 2110, 2210, 2211, 2211(B)(1)(B), 3010(A) AND(B) - FIDELITY INVESTMENTS INSTITUTIONAL SERVICES COMPANY, INC.MARKETED, SOLD AND/OR WHOLESALED SHARES IN AN INCOME MUTUALFUND AND IN CONNECTION WITH SUCH ACTIVITIES CREATEDADVERTISING, TRAINING AND/OR WHOLESALING MATERIALS FOR THEFUND WHICH WERE PROVIDED TO PUBLIC CUSTOMERS, RETAIL SALESFIRMS, USED INTERNALLY OR USED FOR INSTITUTIONAL PURPOSEDWITHIN THE SELLING INTERMEDIARIES. THE MUTUAL FUND INCLUDEDSECURITIES BACKED BY, AMONG OTHER THINGS, SUB-PRIMEMORTGAGES AND CREDIT CARD AND AUTO LOAN RECEIVABLES. AFTERTHE SUB-PRIME CRISIS BEGAN IN 2007 AND NEGATIVELY AFFECTED THEFINANCIAL MARKETS, THE FUND'S NET ASSET VALUE (NAV) BEGAN TODECREASE AND WAS NO LONGER AN APPROPRIATE INVESTMENT FORCONSERVATIVE INVESTORS SEEKING TO PRESERVE CAPITAL. THE FIRMDISTRIBUTED SALES MATERIALS THAT WERE UNBALANCED ANDMISLEADING, CONTAINED UNWARRANTED STATEMENTS AND FAILED TOPROVIDE A SOUND BASIS BY WHICH TO EVALUATE THE RISKS OF THEFUND. THE SALES MATERIALS FAILED TO PROVIDE A SOUND BASIS FOREVALUATING RISKS RELATING TO THE FUND; CONTINUED TO STATE THATTHE FUND'S PORTFOLIO HOLDINGS WERE OF HIGH CREDIT QUALITYWHEN THEY WERE NOT; FAILED TO TIMELY UPDATE THE SALESMATERIALS TO ACCURATELY PORTRAY THE NEGATIVE IMPACT OF THESUB-PRIME CRISIS ON THE VALUE OF THE FUND'S PORTFOLIOINVESTMENTS AND SHARES; MISCHARACTERIZED THE FUND AS A SHORT-TERM SAVINGS OPTION APPROPRIATE FOR CUSTOMERS WHO SOUGHTTO INVEST FUNDS NEEDED TO PURCHASE A HOME OR CAR; ANDCONTAINED UNQUALIFIED PROMISES OF POSITIVE FUTUREPERFORMANCE. THE FIRM ALSO DISTRIBUTED CERTAIN OF THESEMATERIALS TO THE SELLING INTERMEDIARIES. THE FIRM HADPROCEDURES IN PLACE WITH RESPECT TO THE REVIEW AND APPROVALOF SALES MATERIALS BUT THE PROCEDURES WERE NOT REASONABLYDESIGNED TO ACHIEVE AND MONITOR COMPLIANCE WITH APPLICABLELAWS, REGULATIONS AND RULES. THE PROCEDURES GENERALLYREQUIRED THE MATERIALS BE APPROVED BY A REGISTERED PRINCIPALPRIOR TO USE BUT DID NOT CONTAIN AN APPROPRIATE SYSTEM OFFOLLOW-UP AND REVIEW THAT WAS REASONABLY CALCULATED TOENSURE THE REVIEW WAS ADEQUATE. THE FIRM'S SPOTLIGHT REPORTSWERE CREATED AND USED INTERNALLY; THE FIRM HAD SUPERVISORYPROCEDURES CONCERNING SUCH DOCUMENTS THAT DID NOT REQUIRETHAT THEY BE REVIEWED BY A REGISTERED PRINCIPAL PRIOR TO USEBUT THE PROCEDURES DID NOT PROVIDE FOR ADEQUATE SURVEILLANCEAND FOLLOW-UP TO ENSURE THAT WERE BEING IMPLEMENTED ANDADHERED TO. AS A RESULT, VIOLATIVE SALES MATERIALS WERE CREATEDAND DISTRIBUTED DESPITE THE FACT THAT, PRIOR TO AND DURING THERELEVANT PERIOD, FINRA HAD ISSUED GUIDANCE TO ITS MEMBERS THATHIGHLIGHTED THE RISKS ASSOCIATED WITH BONDS, BOND FUNDS ANDSTRUCTURED PRODUCTS AND DETAILED SUPERVISORYRESPONSIBILITIES OF ITS MEMBERS WITH RESPECT THERETO. AS ARESULT, THE SALES MATERIALS FAILED TO PROVIDE AN ACCURATE ANDBALANCED PRESENTATION CONCERNING THE NATURE, HOLDINGS ANDRISKS OF AN INVESTMENT IN THE FUND.
Resolution Date: 07/12/2012
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE, THE FIRM IS CENSURED AND FINED $375,000, JOINTLY ANDSEVERALLY. FINE PAID IN FULL ON 08/07/2012.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
Allegations: AS INDICATED IN THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT,NO. 2008013791601, FINRA FOUND THAT, DURING THE PERIOD DECEMBER1,2006 THROUGH DECEMBER 31, 2008, FIISC (1) VIOLATED NASD RULES2210 AND 2110 AND FINRA RULE 2010 BY DISTRIBUTING CERTAIN SALESMATERIALS THAT WERE UNBALANCED AND MISLEADING, CONTAINEDUNWARRANTED STATEMENTS AND FAILED TO PROVIDE A SOUND BASISBY WHICH TO EVALUATE THE RISKS OF THE FIDELITY ULTRA SHORT BONDFUND ("FUND"). IN ADDITION, BY DISTRIBUTING CERTAIN OF THEFOREGOING MATERIALS TO THE SELLING INTERMEDIARIES, FIISCVIOLATED NASD RULE 2211; AND (2) FAILED TO ESTABLISH, MAINTAIN ANDENFORCE ADEQUATE SUPERVISORY SYSTEMS, INCLUDING SYSTEMS OFFOLLOW-UP AND REVIEW, WHICH WERE REASONABLY DESIGNED TOACHIEVE COMPLIANCE WITH NASD AND FINRA RULES; AS A RESULT,CERTAIN SALES MATERIALS FAILED TO PROVIDE AN ACCURATE ANDBALANCED PRESENTATION CONCERNING THE NATURE, HOLDINGS ANDRISKS OF AN INVESTMENT IN THE FUND. FIISC THEREBY VIOLATED NASDRULES 3010(A) AND (B), 2110 AND 2211(B)(1)(B), AND FINRA RULE 2010.
AS INDICATED IN THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT,NO. 2008013791601, FINRA FOUND THAT, DURING THE PERIOD DECEMBER1,2006 THROUGH DECEMBER 31, 2008, FIISC (1) VIOLATED NASD RULES2210 AND 2110 AND FINRA RULE 2010 BY DISTRIBUTING CERTAIN SALESMATERIALS THAT WERE UNBALANCED AND MISLEADING, CONTAINEDUNWARRANTED STATEMENTS AND FAILED TO PROVIDE A SOUND BASISBY WHICH TO EVALUATE THE RISKS OF THE FIDELITY ULTRA SHORT BONDFUND ("FUND"). IN ADDITION, BY DISTRIBUTING CERTAIN OF THEFOREGOING MATERIALS TO THE SELLING INTERMEDIARIES, FIISCVIOLATED NASD RULE 2211; AND (2) FAILED TO ESTABLISH, MAINTAIN ANDENFORCE ADEQUATE SUPERVISORY SYSTEMS, INCLUDING SYSTEMS OFFOLLOW-UP AND REVIEW, WHICH WERE REASONABLY DESIGNED TOACHIEVE COMPLIANCE WITH NASD AND FINRA RULES; AS A RESULT,CERTAIN SALES MATERIALS FAILED TO PROVIDE AN ACCURATE ANDBALANCED PRESENTATION CONCERNING THE NATURE, HOLDINGS ANDRISKS OF AN INVESTMENT IN THE FUND. FIISC THEREBY VIOLATED NASDRULES 3010(A) AND (B), 2110 AND 2211(B)(1)(B), AND FINRA RULE 2010.
Resolution Date: 07/12/2012
Resolution:
Other Sanctions Ordered:
Sanction Details: FINE OF $375,000 PAID 08/03/12, JOINT AND SEVERAL WITH FBS
Allegations: NASD RULES 2110, 2210(C)(2), 2210(D) AND 3010 - BETWEEN JANUARY 2003AND JANUARY 2006 FIDELITY VIOLATED NASD ADVERTISING RULES BYPREPARING AND DISTRIBUTING MISLEADING SALES LITERATURE RELATEDTO INVESTMENT PLANS (THE "PLANS") TO CURRENT INVESTORS AND TOOTHER BROKER DEALERS AND THEIR REPRESENTATIVES FORDISTRIBUTION TO MEMBERS OF THE PUBLIC. IN ADDITION, FIDELITYPREPARED A SLIDE PRESENTATION WHICH WAS USED BY REGISTEREDREPRESENTATIVES WHO SOLD THE PLANS, BUT DID NOT FILE THE SLIDEPRESENTATIONS WITH NASD'S ADVERTISING REGULATION DEPARTMENTWITHIN 10 BUSINESS DAYS OF FIRST USE. FIDELITY ALSO FAILED TOSUPERVISE ADEQUATELY THE REVIEW OF PLAN SALES LITERATURE INTHAT INDIVIDUALS WHO REVIEWED AND APPROVED THE LITERATURE DIDNOT ADEQUATELY UNDERSTAND THE UNUSUAL FEATURES OF THEPRODUCT, WHICH WAS UNLIKE OTHER PRODUCTS MARKETED BYFIDELITY. WITHOUT A FULL UNDERSTANDING OF THE PRODUCT THOSEINVOLVED IN CREATING AND APPROVING THE SALES LITERATURE FAILEDTO DETECT THE PROBLEMS WITH THE SALES LITERATURE.
NASD RULES 2110, 2210(C)(2), 2210(D) AND 3010 - BETWEEN JANUARY 2003AND JANUARY 2006 FIDELITY VIOLATED NASD ADVERTISING RULES BYPREPARING AND DISTRIBUTING MISLEADING SALES LITERATURE RELATEDTO INVESTMENT PLANS (THE "PLANS") TO CURRENT INVESTORS AND TOOTHER BROKER DEALERS AND THEIR REPRESENTATIVES FORDISTRIBUTION TO MEMBERS OF THE PUBLIC. IN ADDITION, FIDELITYPREPARED A SLIDE PRESENTATION WHICH WAS USED BY REGISTEREDREPRESENTATIVES WHO SOLD THE PLANS, BUT DID NOT FILE THE SLIDEPRESENTATIONS WITH NASD'S ADVERTISING REGULATION DEPARTMENTWITHIN 10 BUSINESS DAYS OF FIRST USE. FIDELITY ALSO FAILED TOSUPERVISE ADEQUATELY THE REVIEW OF PLAN SALES LITERATURE INTHAT INDIVIDUALS WHO REVIEWED AND APPROVED THE LITERATURE DIDNOT ADEQUATELY UNDERSTAND THE UNUSUAL FEATURES OF THEPRODUCT, WHICH WAS UNLIKE OTHER PRODUCTS MARKETED BYFIDELITY. WITHOUT A FULL UNDERSTANDING OF THE PRODUCT THOSEINVOLVED IN CREATING AND APPROVING THE SALES LITERATURE FAILEDTO DETECT THE PROBLEMS WITH THE SALES LITERATURE.
Resolution Date: 05/08/2007
Resolution:
Other Sanctions Ordered: UNDERTAKINGS
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, FIDELITY CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE THE FIRM IS CENSURED AND FINED $400,000, JOINTLY ANDSEVERALLY. THE FINE WILL BE PAID TO THE NASD INVESTOR EDUCATIONFOUNDATION TO BE USED FOR THE INVESTOR EDUCATION NEEDS OFMEMBERS OF THE UNITED STATES MILITARY AND THEIR FAMILIES. THEFINE MUST BE PAID WITHIN 10 DAYS. FIDELITY ALSO UNDERTAKES TO,FOR A PERIOD OF FIVE YEARS, TO INCLUDE IN ALL FIDELITY SALESLITERATURE AND ADVERTISEMENTS REGARDING OR REFERRING TOCERTAIN PLANS A PROMINENT NOTICE TO CURRENT PLAN HOLDERSSUBSTANTIALLY AS FOLLOWS: (I) [ FOR PLAN HOLDERS WHO WOULD LIKETO CHANGE THE TOTAL FACE AMOUNT OF THEIR PLANS: ADDITIONALSHARES OF THE UNDERLYING FUND CAN BE PURCHASED OUTSIDE THEPLAN WITHOUT PAYING ADDITIONAL PLAN-LEVEL CREATION AND SALESCHARGES FOR UP TO 50% ON THE AMOUNT THAT WOULD HAVE BEENINVESTED FOR THE FIRST 12 MONTHS LESS THE CHARGES ALREADYPAID, WHICH MAY LOWER YOUR COST OF INVESTING. PLEASE CONSULTYOUR INVESTMENT PROFESSIONAL REGARDING YOUR INVESTMENTSITUATION. ("THE PLAN NOTICE")] (II) INCLUDE THE PLAN NOTICEPROMINENTLY ON THE FIRM'S EXTERNAL WEBSITE AND ANY OTHERFIDELITY WEBSITE WITH SUBSTANTIVE INFORMATION REGARDING THEPLANS, WHETHER OR NOT THE WEBSITE IS ACCESSIBLE BY PLANHOLDERS.(III) PROVIDE THE PLAN NOTICE IN WRITING TO ALL PERIODIC ACCOUNTSTATEMENTS SENT DIRECTLY TO EACH PLAN HOLDER.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
www.finra.org/brokercheck User GuidanceWITHOUT ADMITTING OR DENYING THE FINDINGS, FIDELITY CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE THE FIRM IS CENSURED AND FINED $400,000, JOINTLY ANDSEVERALLY. THE FINE WILL BE PAID TO THE NASD INVESTOR EDUCATIONFOUNDATION TO BE USED FOR THE INVESTOR EDUCATION NEEDS OFMEMBERS OF THE UNITED STATES MILITARY AND THEIR FAMILIES. THEFINE MUST BE PAID WITHIN 10 DAYS. FIDELITY ALSO UNDERTAKES TO,FOR A PERIOD OF FIVE YEARS, TO INCLUDE IN ALL FIDELITY SALESLITERATURE AND ADVERTISEMENTS REGARDING OR REFERRING TOCERTAIN PLANS A PROMINENT NOTICE TO CURRENT PLAN HOLDERSSUBSTANTIALLY AS FOLLOWS: (I) [ FOR PLAN HOLDERS WHO WOULD LIKETO CHANGE THE TOTAL FACE AMOUNT OF THEIR PLANS: ADDITIONALSHARES OF THE UNDERLYING FUND CAN BE PURCHASED OUTSIDE THEPLAN WITHOUT PAYING ADDITIONAL PLAN-LEVEL CREATION AND SALESCHARGES FOR UP TO 50% ON THE AMOUNT THAT WOULD HAVE BEENINVESTED FOR THE FIRST 12 MONTHS LESS THE CHARGES ALREADYPAID, WHICH MAY LOWER YOUR COST OF INVESTING. PLEASE CONSULTYOUR INVESTMENT PROFESSIONAL REGARDING YOUR INVESTMENTSITUATION. ("THE PLAN NOTICE")] (II) INCLUDE THE PLAN NOTICEPROMINENTLY ON THE FIRM'S EXTERNAL WEBSITE AND ANY OTHERFIDELITY WEBSITE WITH SUBSTANTIVE INFORMATION REGARDING THEPLANS, WHETHER OR NOT THE WEBSITE IS ACCESSIBLE BY PLANHOLDERS.(III) PROVIDE THE PLAN NOTICE IN WRITING TO ALL PERIODIC ACCOUNTSTATEMENTS SENT DIRECTLY TO EACH PLAN HOLDER.
iReporting Source: Firm
Initiated By: NASD
Principal Sanction(s)/ReliefSought:
Censure
Date Initiated: 09/27/2006
Docket/Case Number: 2006003796101
Principal Product Type: Investment Contract(s)
Other Product Type(s):
Allegations: THE REGISTRANT AND AN AFFILIATED BROKER-DEALER CONSENTED TO ACENSURE, A $400,000 FINE FOR WHICH THEY ARE JOINTLY ANDSEVERALLY LIABLE, AND TO VARIOUS UNDERTAKINGS, IN CONNECTIONWITH THE NASD'S ALLEGATIONS THAT (1) THE FIRMS VIOLATED NASDADVERTISING RULES BY PREPARING AND DISTRIBUTING MISLEADINGSALES LITERATURE RELATING TO FIDELITY'S DESTINY I AND IISYSTEMATIC INVESTMENT PLANS AND (2) FIDELITY DID NOT ADEQUATELYSUPERVISE THE REVIEW OF THIS SALES LITERATURE IN LIGHT OF THEUNUSUAL FEATURES OF THE DESTINY PRODUCTS.
Sanction Details: FINE OF $400,000 PAID MAY 18, 2007
Firm Statement THE REGISTRANT AND AN AFFILIATED BROKER-DEALER CONSENTED TO ACENSURE, A $400,000 FINE FOR WHICH THEY ARE JOINTLY ANDSEVERALLY LIABLE, AND TO VARIOUS UNDERTAKINGS. FINE PAID MAY 18,2007.
Allegations: SECTION 17(A) OF THE SECURITIES EXCHANGE ACT OF 1934, SEC RULE17A-4 THEREUNDER, NASD RULES 1031, 2110, 3010 AND 3110 - DURING2002 THROUGH 2005, FIDELITY INVESTMENTS INSTITUTIONAL SERVICESCOMPANY, INC. ("RESPONDENT") VIOLATED NASD RULES BY: (I) FAILING TOASSESS NUMEROUS INDIVIDUALS JOB FUNCTIONS BEFORE REGISTERINGWITH NASD TO DETERMINE WHETHER THEIR JOB FUNCTIONS REQUIREDOR PERMITTED REGISTRATION UNDER NASD RULES; (II) FAILING TOADEQUATELY TRACK REGISTERED INDIVIDUALS WHEN THEY CHANGEDJOB FUNCTIONS TO DETERMINE WHETHER THEIR NEW JOB FUNCTIONSCONTINUED TO REQUIRE OR PERMIT REGISTRATION UNDER NASDRULES; (III) MAINTAINING REGISTRATIONS FOR APPROXIMATELY 1100EMPLOYEES, MANY OF WHOM DID NOT CONDUCT ANY ACTIVITIES FORTHE BROKERAGE FIRMS, AND NONE OF WHOSE DUTIES FELL WITHIN THEACTIVITIES OF PERSONS WHO WERE REQUIRED OR PERMITTED TO BEREGISTERED UNDER NASD RULES; AND (IV) FAILING TO ASSIGNREGISTERED INDIVIDUALS TO SUPERVISE CERTAIN REGISTEREDINDIVIDUALS. THESE VIOLATIONS RESULTED BECAUSE RESPONDENTPERMITTED EMPLOYEES FROM ASSOCIATE MEMBER FIRMS TO MAINTAINREGISTRATIONS IF THEY CHOSE TO DO SO, AND THE RESPONDENT DIDNOT ASSESS OR DETERMINE, ON AN INDIVIDUAL BASIS, WHETHER THEACTIVITIES OF EACH INDIVIDUAL SEEKING TO MAINTAIN A REGISTRATIONFELL WITHIN EITHER THE "PERMITTED" OR "REQUIRED" CATEGORIES FORNASD REGISTRATION. IN FACT, ON SEVERAL OCCASIONS, RESPONDENTMOVED REGISTRATIONS FROM ONE BROKER-DEALER TO ANOTHER,AGAIN, WITHOUT ASSESSING OR DETERMINING WHETHER IN FACTPERSONS COULD OR SHOULD BE REGISTERED. (ALLEGATIONSCONTINUED IN COMMENTS SECTION)
SECTION 17(A) OF THE SECURITIES EXCHANGE ACT OF 1934, SEC RULE17A-4 THEREUNDER, NASD RULES 1031, 2110, 3010 AND 3110 - DURING2002 THROUGH 2005, FIDELITY INVESTMENTS INSTITUTIONAL SERVICESCOMPANY, INC. ("RESPONDENT") VIOLATED NASD RULES BY: (I) FAILING TOASSESS NUMEROUS INDIVIDUALS JOB FUNCTIONS BEFORE REGISTERINGWITH NASD TO DETERMINE WHETHER THEIR JOB FUNCTIONS REQUIREDOR PERMITTED REGISTRATION UNDER NASD RULES; (II) FAILING TOADEQUATELY TRACK REGISTERED INDIVIDUALS WHEN THEY CHANGEDJOB FUNCTIONS TO DETERMINE WHETHER THEIR NEW JOB FUNCTIONSCONTINUED TO REQUIRE OR PERMIT REGISTRATION UNDER NASDRULES; (III) MAINTAINING REGISTRATIONS FOR APPROXIMATELY 1100EMPLOYEES, MANY OF WHOM DID NOT CONDUCT ANY ACTIVITIES FORTHE BROKERAGE FIRMS, AND NONE OF WHOSE DUTIES FELL WITHIN THEACTIVITIES OF PERSONS WHO WERE REQUIRED OR PERMITTED TO BEREGISTERED UNDER NASD RULES; AND (IV) FAILING TO ASSIGNREGISTERED INDIVIDUALS TO SUPERVISE CERTAIN REGISTEREDINDIVIDUALS. THESE VIOLATIONS RESULTED BECAUSE RESPONDENTPERMITTED EMPLOYEES FROM ASSOCIATE MEMBER FIRMS TO MAINTAINREGISTRATIONS IF THEY CHOSE TO DO SO, AND THE RESPONDENT DIDNOT ASSESS OR DETERMINE, ON AN INDIVIDUAL BASIS, WHETHER THEACTIVITIES OF EACH INDIVIDUAL SEEKING TO MAINTAIN A REGISTRATIONFELL WITHIN EITHER THE "PERMITTED" OR "REQUIRED" CATEGORIES FORNASD REGISTRATION. IN FACT, ON SEVERAL OCCASIONS, RESPONDENTMOVED REGISTRATIONS FROM ONE BROKER-DEALER TO ANOTHER,AGAIN, WITHOUT ASSESSING OR DETERMINING WHETHER IN FACTPERSONS COULD OR SHOULD BE REGISTERED. (ALLEGATIONSCONTINUED IN COMMENTS SECTION)
Resolution Date: 02/05/2007
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, RESPONDENTCONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OFFINDINGS; THEREFORE THE FIRM IS CENSURED AND FINED $3,750,000.00,JOINTLY AND SEVERALLY. IN ADDITION, RESPONDENT MUST COMPLY WITHTHE FOLLOWING UNDERTAKINGS: (1) AUDIT OF CURRENT REGISTRATIONSYSTEM, POLICIES AND PROCEDURES. (2) DELIVERY OF CURRENTREGISTRATION AUDIT REPORT NO LATER THAN 120 DAYS. (3)CERTIFICATION REGARDING: CURRENT REGISTRATION AUDIT REPORT. (4)SEMI-ANNUAL REGISTRATION AUDITS FOR 18 MONTHS. (5) CERTIFICATIONREGARDING: SEMI-ANNUAL REGISTRATION AUDITS. (6) OFFICERCERTIFICATION REGARDING REGISTRATION SYSTEM AND PROCEDURESWITHIN NINE MONTHS. (7) AUDIT OF CURRENT ELECTRONICRECORDKEEPING SYSTEM, POLICIES AND PROCEDURES. (8) DELIVERY OFEMAIL AUDIT REPORT NO LATER THAN 180 DAYS. (9) CERTIFICATIONREGARDING: EMAIL AUDIT REPORT. (10) OFFICER CERTIFICATIONREGARDING ELECTRONIC RECORDKEEPING SYSTEM AND PROCEDURESWITHIN 12 MONTHS.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
WITHOUT ADMITTING OR DENYING THE FINDINGS, RESPONDENTCONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OFFINDINGS; THEREFORE THE FIRM IS CENSURED AND FINED $3,750,000.00,JOINTLY AND SEVERALLY. IN ADDITION, RESPONDENT MUST COMPLY WITHTHE FOLLOWING UNDERTAKINGS: (1) AUDIT OF CURRENT REGISTRATIONSYSTEM, POLICIES AND PROCEDURES. (2) DELIVERY OF CURRENTREGISTRATION AUDIT REPORT NO LATER THAN 120 DAYS. (3)CERTIFICATION REGARDING: CURRENT REGISTRATION AUDIT REPORT. (4)SEMI-ANNUAL REGISTRATION AUDITS FOR 18 MONTHS. (5) CERTIFICATIONREGARDING: SEMI-ANNUAL REGISTRATION AUDITS. (6) OFFICERCERTIFICATION REGARDING REGISTRATION SYSTEM AND PROCEDURESWITHIN NINE MONTHS. (7) AUDIT OF CURRENT ELECTRONICRECORDKEEPING SYSTEM, POLICIES AND PROCEDURES. (8) DELIVERY OFEMAIL AUDIT REPORT NO LATER THAN 180 DAYS. (9) CERTIFICATIONREGARDING: EMAIL AUDIT REPORT. (10) OFFICER CERTIFICATIONREGARDING ELECTRONIC RECORDKEEPING SYSTEM AND PROCEDURESWITHIN 12 MONTHS.
Regulator Statement (ALLEGATIONS CONTINUED) DURING 2001 THROUGH 2004, RESPONDENT'SELECTRONIC COMMUNICATIONS RETENTION SYSTEM: (I) FAILED TOCAPTURE AND MAINTAIN ALL E-MAIL RELATED TO ITS BUSINESS AS SUCH,INCLUDING E-MAIL, INSTANT MESSAGING AND OUTSIDE VENDORSERVICES, (II) FAILED TO RETAIN AND PRESERVE ALL E-MAIL FOR THEREQUIRED PERIOD, AND (III) FAILED TO PRESERVE ALL E-MAIL IN A NON-REWRITABLE, NON-ERASABLE FORMAT. RESPONDENT ALSO FAILED TOESTABLISH, MAINTAIN, AND ENFORCE A SUPERVISORY SYSTEM ANDPROCEDURES THAT WERE REASONABLY DESIGNED TO CAPTURE, RETAIN,AND PRESERVE ORIGINALS OF ALL ELECTRONIC COMMUNICATIONSRELATING TO ITS BUSINESS AS SUCH, IN FORMAT, MEDIUM, AND FOR THETIME PERIODS PRESCRIBED BY FEDERAL SECURITIES LAWS AND NASDRULES.
iReporting Source: Firm
Initiated By: NASD
Date Initiated: 02/05/2007
Docket/Case Number: 2005000627701
Principal Product Type: No Product
Other Product Type(s):
Allegations: THE REGISTRANT AND THREE AFFILIATED BROKER-DEALERS CONSENTEDTO A CENSURE, A $3.75 MILLION FINE FOR WHICH THEY ARE JOINTLY ANDSEVERALLY LIABLE, AND TO VARIOUS UNDERTAKINGS IN CONNECTIONWITH THE NASD'S ALLEGATIONS THAT THE FIRMS (A) VIOLATEDEXCHANGE ACT RULE 17A-4 AND NASD RULE 3110 BY FAILING TO RETAINELECTRONIC COMMUNICATIONS IN THE FORMAT AND FOR THE LENGTHOF TIME REQUIRED BY THOSE RULES; (B) VIOLATED NASD RULE 1031 BYALLOWING EMPLOYEES WHO WERE NEITHER REQUIRED NOR PERMITTEDTO BE REGISTERED TO RETAIN THEIR REGISTRATIONS; (C) VIOLATEDNASD RULE 3010 BY FAILING TO ASSIGN A REGISTERED SUPERVISOR TONUMEROUS REGISTERED PERSONS; (D) FAILED TO SUPERVISE THEREGISTRATION OF EMPLOYEES AND THE PROCESS FOR RETAININGELECTRONIC COMMUNICATIONS; AND (E) THAT WITH RESPECT TOAFFILIATE FIDELITY DISTRIBUTORS CORPORATION IT FAILED TOSUPERVISE ITS REGISTERED PERSONS WHO ACCEPTED GIFTS ANDENTERTAINMENT IN VIOLATION OF THE FIRM'S POLICIES.
Sanction Details: THE REGISTRANT AND THREE AFFILIATED BROKER-DEALERS JOINTLY ANDSEVERALLY PAID A $3,750,000 FINE ON 02/12/2007.
Firm Statement ON FEBRUARY 5, 2007, THE NASD ENTERED AN AWC IN WHICH THEREGISTRANT AND THREE AFFILIATED BROKER-DEALERS CONSENTED TOA CENSURE, A $3.75 MILLION FINE, FOR WHICH THEY ARE JOINTLY ANDSEVERALLY LIABLE AND TO VARIOUS UNDERTAKINGS.
Brokerage firms are not required to report arbitration claims filed against them by customers; however, BrokerCheckprovides summary information regarding FINRA arbitration awards involving securities and commodities disputesbetween public customers and registered securities firms in this section of the report. The full text of arbitration awards issued by FINRA is available at www.finra.org/awardsonline.
Disclosure 1 of 17
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
12/23/2003
03-08487
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-NEGLIGENCE; NO OTHER CONTROVERSY INVOLVED
NO OTHER TYPE OF SEC INVOLVE; MUTUAL FUNDS
$27,474.00
AWARD AGAINST PARTY
08/06/2004
$7,488.68
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 2 of 17
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
NASD
88-01879
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-ERRORS-CHARGES; NO OTHER CONTROVERSY INVOLVED
NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OF SECURITIES