Perks Often Lavished on Fund Execs

So reports the Boston Globe, in the wake of the recent investigation into a Jefferies broker lavishing gifts on Fidelity Investments traders. Fidelity’s rules, in fact, say that no one at the firm may accept a gift or compensation that is intended to "influence a fund’s investment decisions or trading activity." If a Fidelity executive does accept a gift that they deem to be genuinely business related or reasonable, it may not be valued at more than $100 from any one person or outside entity per calendar year. NASD also has a rule that brokers may not offer gifts with a value of more than $100. The Globe article goes on to outline rules at Scudder Funds, Eaton Vance, Bank of America and Putnam Investments .

These rules are all well and good, but executives in the money management business who have the power to direct thousands or millions of dollars often get swept up in a bountiful lifestyle their outside business contacts can offer them.