The NASD is fining four Fidelity Investments broker/dealer subsidiaries $3.75 million for supervisory failures, including allowing brokers to accept lavish gifts. As many as 1,000 of Fidelity registered reps didn’t have supervisors, the NASD said. In addition, Fidelity maintained broker registrations for 1,100 employees who didn’t need the credentials, which would have enabled them to join another brokerage without taking tests required of those who are unregistered for two or more years. The regulator said that these registrations occurred because Fidelity permitted new employees to “park” NASD licenses they held prior to joining Fidelity even though they did not need them for jobs that neither required nor permitted NASD licenses.
Furthermore, the NASD said, Fidelity failed to maintain e-mails of 1,900 registered reps.