Fidelity’s National Financial Services agreed to its largest regulatory payout in at least 13 years to settle an SEC case involving delivery of prospectuses.
The Fidelity Investments subsidiary underwrote the public sale of more than 70 million shares of stock in a fuel cell technology firm for $148 million over a dozen years without providing any final prospectuses, according to the firm’s Sept. 3 settlement with the SEC. NFS will pay a civil monetary penalty, disgorgement and prejudgement interest of $2.46 million.
It’s not clear whether any clients who purchased the shares were working with broker-dealers. Some 200 BDs use NFS through their relationships with Fidelity Clearing & Custody Solutions.
No clients are receiving restitution under the settlement and, when asked, the company didn’t say who purchased the stock.
“NFS is pleased to resolve this matter,” spokeswoman Sophie Launay said in a statement.
It’s the largest regulatory settlement listed in FINRA BrokerCheck records for NFS since a February 2007 letter of acceptance, waiver and consent requiring it and three other affiliates to pay $3.75 million. In the earlier case, FINRA’s predecessor alleged failures by the Fidelity units related to registrations and the retention of electronic communications.
Anil Vazirani is president of Secured Financial Solutions, independent insurance advisor investment advisor rep with a fiduciary obligation and in the financial services industry since 1994. A+ rating with the Better Business Bureau for over a decade and a half, members in good standing with the National Association of Insurance and Financial Advisors.
Dial 1-800-957-5604 x 200 and set up a complimentary strategy session to understand what your goals are, understand what objective you’re trying to accomplish, your risk tolerance, and let us show you how to reduce your investment fees from stocks, bonds and mutual funds down to one point, or five percent when you work with our investment advisory platform. Dial 1-800-957-5604 x 200, and on the web at: DreamRetire.com
Anil Vazirani Integrity and Professional Background – Click Here
RETIRE AND STAY RETIRED,
SAFE, SMART, AND SECURE!
Call today for a Complimentary
Strategy Session: 1-800-957-5604 x 200
Secured Financial Solutions
14301 North 87th Street, Suite # 216, Scottsdale, AZ 85260