Fidelity Brokerage Services, LLC (CRD #7784) was censured and fined $350,000 by FINRA for overcharging client accounts. (See FINRA AWC No. 2012034916901)
FINRA alleged that at various times from January 2006 through September 2013, Fidelity Brokerage Services, LLC overcharged 20,663 customer accounts approximately $2.4 million. FINRA further alleged that the firm did not have reasonable supervisory systems or procedures to ensure that customers were charged accurate fees for accounts managed by third-party investment advisors. As such, this resulted in erroneous and duplicate fees charged in certain clients accounts utilizing asset-based pricing, duplicate fees in certain customer accounts managed by third-party wrap providers, and erroneous markups on certain fixed income investments.
FINRA’s findings also allege that Fidelity failed to establish an adequate supervisory system and written procedures reasonably designed to ensure that customers received accurate disclosures relating to the Asset-Based Pricing Program for accounts managed by third-party investment advisors. FINRA further alleged that Fidelity failed to monitor billing in these fee-based brokerage accounts to ensure that customers were charged in accordance with Fidelity’s disclosures.
If you feel that your investment account has been mishandled by your broker or brokerage firm, contact the Hanley Law to discuss your legal options. If you have lost money as a result of your broker’s or brokerage firm’s misconduct, you may be able to recover your investment losses. Contact Hanley Law toll free at (239) 649-0050 for a complimentary initial consultation.