Four Fidelity Investments brokers have been fined USD3.75 million by NASD for breaking violations over record keeping.
It is alleged that registrations for 1,100 people were not maintained by the firm. They also failed in assigning registered supervisors to 1,000 people, and did not keep their electronic records up to date by failing to keep 1,900 e-mails belonging to registered individuals. There were also other electronic information failures.
As a result of this the broker-dealers involved had to conduct in depth audits in to the way the firm operates their systems, with regards to registration and recordkeeping.
The firm was also found to be largely unsupervised by the Fidelity Distribution Corp.