Fidelity Fined $8 Million in Probe of `Lavish' Gifts

[WarholPop]

Source: Bloomberg

Fidelity Investments, the world's largest mutual-fund company, will pay $8 million to settle U.S. regulatory claims it let staff members accept Super Bowl tickets, private-jet travel and other gifts from brokers. Fidelity failed to seek the best terms for mutual-fund trades because its employees were influenced by ``family and romantic relationships,'' the SEC said in a statement today.


Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=afxQB.BrZJ8g&refer=home

[Turbineguy]

1. I didn't get one

Oh, wait. I'm a customer.

http://www.amazon.com/Where-Are-Customers-Yachts-Investment/dp/0471770892/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1204764215&sr=8-1

[Drum]

6. Yikes, I am too.

Oh brother.

[high density]

2. Sounds like a great time for anybody at Fidelity to move their assets to Vanguard

:)

[customerserviceguy]

3. Wish I could

Fidelity is the firm my company's selected for our 401K accounts. Maybe if I anonymously email this story to the chief muckety-muck, who no doubt has megabucks stashed away there...

[high density]

4. I wish we could choose our own 401k administrator

The agreements are too chummy for the big companies and too expensive for the very small ones. If we could choose to put our 401k wherever we want (like an IRA) I think the world would be a better place!

[Ian David]

5. If only I had known that I could be supplied with "romantic relationships" if I worked for Fidelity.

[trof]

7. I had to call the SEC to get my Fidelity account straightened out.

Complicated story, but I was transferring about 10% of a sizable upper 6 figures IRA to another broker. This wasn't nickels and dimes.
Due to a clerical error by someone in Fidelity's clearing house the entire account was transferred, leaving a zero balance at Fidelity.

The money was 'lost' for several weeks. I had no access to it and could make no trades at either brokerage account. At one point I tried to get in touch with Fidelity CEO Ned Johnson. The arrogant sonofabitch would not accept my calls. The best I could do was one of his assistants.
And he just kept promising that they were 'working on it'.

I finally talked to the presidents of Fidelity's clearing house and the other broker's clearing house and all they did was point the finger at each other.

So I called the nearest SEC office in Atlanta.
A very bright and accommodating woman there got on the case and had it resolved in a few days.
Fidelity received a 'reprimand'.

Fidelity sux, big time.
I've been with Schwab ever since.