{{short description|American multinational financial services firm}} {{Use mdy dates|date=August 2024}} {{Use American English|date=August 2024}} {{Infobox company | name = Fidelity Investments | logo = Fidelity Investments Logo.svg | logo_size = 230px | image = 245 Summer Street Boston MA cropped.jpeg | image_caption = Headquarters at 245 Summer Street in Boston | type = Private | founder = Edward C. Johnson II | area_served = Worldwide | key_people = Abigail Johnson (CEO) | industry = Financial services | services = {{flatlist| * Investment management * Asset management * Risk management * Stockbroker * Financial planners * Wealth management * Retirement planning and advice}} | products = {{flatlist| * Annuities * Mutual funds * Exchange-traded funds * Index funds * IRAs * 401(k)s * 529 plans * Investment funds * Retirement planning and advice * Life insurance * Transaction accounts * Credit cards }} | revenue = {{increase}} {{US$|37.7}} billion | revenue_year = 2025 | operating_income = {{increase}} {{US$|12.7}} billion | income_year = 2025 | aum = {{increase}} {{US$|7.1}} trillion (2025) | num_employees = 80,000 | num_employees_year = 2025 | founded = {{start date and age|1946}} | former_name = Fidelity Management and Research Company | hq_location_city = Boston, Massachusetts | hq_location_country = United States | owners = {{ubl|Abigail Johnson and family (roughly 40%)|Current and former employees (roughly 60%)}} | website = {{URL|fidelity.com}} | footnotes = <ref name=AR25>{{Cite web |url=https://about.fidelity.com/data-and-insights/2025-annual-report | title=2025 Annual Report | publisher=Fidelity Investments |date=March 2, 2025}}</ref><ref name=heritage>{{cite web | url=https://www.fidelity.com/about-fidelity/our-heritage |title=Our Heritage | publisher=Fidelity Investments}}</ref> }} '''Fidelity Investments''', formerly known as '''Fidelity Management & Research''' ('''FMR'''), owned by FMR LLC and headquartered in Boston, Massachusetts, United States, provides financial services. Established in 1946, the company is one of the largest asset managers in the world, with $5.9 trillion in discretionary assets under management, and $15.1 trillion in assets under administration, {{as of|2024|12|lc=y}}.<ref name=about>{{Cite web | title=About Fidelity - Our Company | url=https://www.fidelity.com/about-fidelity/our-company | publisher=Fidelity Investments}}</ref>
Fidelity operates a brokerage firm, manages mutual funds, provides fund distribution and investment advice, retirement services, index funds, wealth management, securities execution and clearance, asset custody, and life insurance. It offers brokerage clearing and back office support and software products for financial services firms. It also offers a donor-advised fund, Fidelity Charitable, for clients seeking to donate securities. It processes 3.5 million daily average trades. It is one of the largest providers of 401(k) plans and manages employee benefit programs for more than 28,800 businesses.<ref name=about/>
Abigail Johnson, granddaughter of founder Edward C. Johnson II, and her family and their affiliates own a roughly 40% interest in the company. The remainder is owned by current and former executives.<ref>{{Cite news | url=https://www.wealthmanagement.com/investment-news/fidelity-s-abby-johnson-tightens-grip-on-far-flung-family-empire | title=Fidelity's Abby Johnson Tightens Grip on Far-Flung Family Empire | first=Loukia | last=Gyftopoulou | work=Wealth Management | date=March 22, 2024}}</ref><ref>{{cite news | url=https://money.cnn.com/2005/10/28/news/newsmakers/fidelity_johnson/ | archive-url=https://web.archive.org/web/20051221090235/http://money.cnn.com/2005/10/28/news/newsmakers/fidelity_johnson/ | url-status=dead | archive-date=December 21, 2005 | title=Johnson still Fidelity successor? | work=CNN | date=October 28, 2005}}</ref><ref>{{Cite news |url=https://www.wsj.com/articles/abigail-johnson-named-ceo-of-fidelity-investments-1413226082 | last=Grind |first=Kirsten |title=Abigail Johnson Named CEO of Fidelity Investments | newspaper=The Wall Street Journal | date=October 13, 2014 | url-access=subscription}}</ref><ref>{{Cite web | url=https://www.forbes.com/profile/abigail-johnson/ |title=Abigail Johnson | website=Forbes}}</ref>
The company also makes investments on its own account for the benefit of the founding family and its executives.<ref>{{cite news | url=https://www.bostonglobe.com/business/2013/08/08/fidelity-johnson-takes-heavy-loss-his-pursuit-perfect-tomato/1K47Kxicqhrd35i5EKj2II/story.html | title=A heavy loss in Fidelity's pursuit of the perfect tomato | first=Shirley | last=Leung | work=Boston Globe | date=August 9, 2013 | url-access=subscription}}</ref> Investments have included Seaport Center and 2.5 million square feet of office space in Boston;<ref>{{cite news | url=https://www.nytimes.com/2000/04/09/realestate/fidelity-a-major-investor-in-real-estate-too.html | title=Fidelity: A Major Investor in Real Estate, Too | first=SUSAN | last=DIESENHOUSE | work=The New York Times | date=April 9, 2000}}</ref> COLT Telecom Group;<ref>{{cite news | url=https://www.theregister.co.uk/2015/08/12/colt_shareholders_flee_loss_making_biz/ | title=Colt shareholders grab Fidelity offer, declare 'we're outta here' | first=Paul | last=Kunert | work=The Register | date=August 12, 2015}}</ref> MetroRed;<ref>{{Cite news | url=https://www.wsj.com/articles/SB1046100626982993183 | title=Fidelity to Give $217 Million To a Number of Top Retirees | first=John | last=Hechinger | work=The Wall Street Journal | date=February 25, 2003 | url-access=subscription}}</ref> Community Newspaper Company;<ref>{{cite news | url=https://www.nytimes.com/2000/09/29/business/the-media-business-fidelity-sells-newspapers-to-boston-herald-owner.html | title=THE MEDIA BUSINESS; Fidelity Sells Newspapers To Boston Herald Owner | first=FELICITY | last=BARRINGER | work=The New York Times | date=September 29, 2000}}</ref> Lanoga;<ref name=stumbles/> Hope Lumber;<ref name=stumbles>{{cite news | url=https://www.reuters.com/article/fidelity-probuild-idUSN0512528620091105 | title=Fidelity's ProBuild investment stumbles -- filing | first1=Ross | last1=Kerber | first2=Aaron | last2=Pressman | editor-first1=Ros | editor-last1=Krasny | editor-first2=Andre | editor-last2=Grenon | work=Reuters | date=November 5, 2009}}</ref> ProBuild;<ref>{{cite press release | url=https://www.globenewswire.com/news-release/2015/07/31/756836/10168/en/Builders-FirstSource-Completes-Acquisition-of-ProBuild.html | title=Builders FirstSource Completes Acquisition of ProBuild | publisher=Globe Newswire | date=July 31, 2015 | archive-date=October 19, 2017 | archive-url=https://web.archive.org/web/20171019111715/http://investors.bldr.com/releasedetail.cfm?releaseid=925078 | url-status=live}}</ref> and Boston Coach.<ref>{{cite news | url=https://www.bostonglobe.com/business/2013/05/23/fidelity-selling-bostoncoach-limousine-group-launched-chairman-ned-johnson/pgujsz0a4xNQqDtDMS0uGI/story.html | title=Fidelity selling BostonCoach limousine group, launched in 1985 by chairman Ned Johnson | first=Beth | last=Healy | work=The Boston Globe | date=May 23, 2013 | url-access=subscription}}</ref>
==History== The Fidelity Fund incorporated in Massachusetts on May 1, 1930, with Edward C. Johnson II serving as president.<ref>{{cite book | url=https://books.google.com/books?id=8D8cAQAAMAAJ |editor-last1=Porter |editor-first1=John Sherman | date=1944 |title=Moody's Manual of Investments: American and Foreign | location=New York |publisher=Moody's Investor Service |page=754 |isbn=}}</ref> The corporate structure changed in 1946 and became known as '''Fidelity Management & Research''' ('''FMR''').<ref name=heritage/>
In 1969, the company formed Fidelity International (FIL) to serve non-U.S. markets and subsequently spun it off in 1980 into an independent entity owned by its employees.<ref>{{cite news | url=https://www.irmagazine.com/articles/buy-side/20222/fidelity-worldwide-investment-going-its-own-way-america/ | title=Fidelity Worldwide Investment is going its own way in America | first=Gill | last=Newton | work=IR Magazine | date=February 16, 2017}}</ref>
In 1982, the company began offering 401(k) products.<ref name=heritage/> In 1984, it offered computerized stock trading.<ref name=heritage/>
In 1991, Fidelity launched the first commercial donor-advised fund.<ref>{{Cite news | url=https://theconversation.com/donor-advised-funds-us-regulators-are-scrambling-to-catch-up-with-the-boom-in-these-charitable-giving-accounts-225344 | title=Donor-advised funds: US regulators are scrambling to catch up with the boom in these charitable giving accounts | first=Brian | last=Mittendorf | work=The Conversation | date=March 19, 2024}}</ref>
In 1995, Fidelity became the first mutual fund company to offer a webpage.<ref>{{Cite news | url=https://www.nytimes.com/1995/02/15/business/company-news-fidelity-to-offer-services-on-world-wide-web.html | title=COMPANY NEWS; FIDELITY TO OFFER SERVICES ON WORLD WIDE WEB | agency=Associated Press | work=The New York Times | date=February 15, 1995 | url-access=limited}}</ref>
In 1997, Robert Pozen was named CEO.<ref>{{cite news | url=https://www.nytimes.com/1997/04/22/business/2-executives-get-new-posts-at-fidelity.html | title=2 Executives Get New Posts At Fidelity | first=KENNETH N. | last=GILPIN | work=The New York Times | date=April 22, 1997}}</ref>
In 2001, Geode Capital Management was established to run and incubate investment strategies for FMR. In 2003, it was spun off as an independent company.<ref>{{cite news | url=https://retirementincomejournal.com/article/the-story-of-geode-fidelitys-low-profile-indexing-jewel/ | title=The story of Geode—Fidelity's low-profile indexing jewel | work=Retirement Income Journal | date=February 11, 2021}}</ref>
In September 2003, the company launched its first exchange-traded fund, the Fidelity Nasdaq Composite Index Tracking Stock Fund (ONEQ).<ref>{{Cite news | url=https://ir.nasdaq.com/news-releases/news-release-details/nasdaq-and-fidelity-unveil-financial-products-based-nasdaq | title=NASDAQ AND Fidelity Unveil Financial Products Based on the NASDAQ Composite Index | publisher=Nasdaq | date=October 1, 2003}}</ref>
In June 2004, the company acquired Wealth Lab; it was decommissioned in 2020.<ref>{{Cite news | url=https://www.finextra.com/pressarticle/1300/fidelity-invests-in-wealth-lab-developer-software | title=Fidelity invests in Wealth-Lab Developer software | work=Finextra | date=June 23, 2004}}</ref>
In 2007, the company changed its legal structure to a limited liability company; FMR LLC became the owning entity.<ref>{{Cite news | url=https://www.reuters.com/article/markets/us/fidelitys-parent-changes-corporate-structure-idUSN02302936/ | title=Fidelity's parent changes corporate structure | first=Muralikumar | last=Anantharaman | work=Reuters | date=November 2, 2007}}</ref>
In 2010, Fidelity Ventures, its venture capital arm, was shut down, and many of the employees created Volition Capital.<ref>{{cite news | url=https://www.bizjournals.com/boston/stories/2010/01/11/daily11.html | title=Fidelity's venture capital arm breaks off | first=Galen | last=Moore | work=American City Business Journals | date=January 11, 2010 | url-access=subscription}}</ref>
In 2011, Fidelity changed the name of its international division from Fidelity International to Fidelity Worldwide Investment and a new logo was introduced.<ref>{{cite news | url=https://www.fnlondon.com/articles/operating-chief-chris-rimmer-leaves-fidelity-worldwide-investment-20150602 | title=Fidelity Worldwide Investment COO exits | first=Andrew | last=Pearce | work=Financial News London | date=June 2, 2015}}</ref>
In 2012, the company moved its Boston headquarters to 245 Summer Street.<ref>{{cite news | url=https://www.bostonglobe.com/business/2012/11/16/fidelity-plans-move-headquarters-summer-boston-after-decades-devonshire/IV8ggV3lV7tQh39VWogUuI/story.html | title=Fidelity plans to move Boston headquarters | first=Beth | last=Healy | work=Boston Globe | date=November 16, 2012 | url-access=subscription}}</ref>
In 2014, Abigail Johnson became president and CEO of Fidelity Investments (FMR) and chairman of Fidelity International (FIL).<ref>{{Cite news | url=https://www.forbes.com/sites/carlodonnell/2014/10/13/abigail-johnson-replaces-father-edward-as-ceo-of-fidelity/ | title=Abigail Johnson Replaces Father Edward As CEO Of Fidelity | last=O'Donnell | first=Carl | work=Forbes | date=October 13, 2014 | url-access=limited}}</ref> She reduced dependence on open-ended mutual funds, instead having the company focus on financial advice, brokerage services, and venture capital.<ref name=afraid>{{Cite news | url=https://www.bostonmagazine.com/news/2018/08/07/abby-johnson-fidelity/ | title=Who's Afraid of Abby Johnson? | first=Kris | last=Frieswick | work=Boston | date=August 7, 2018}}</ref>
In October 2018, Fidelity launched Fidelity Digital Asset Services, a separate entity dedicated to institutional cryptoasset custody and cryptocurrency trading.<ref>{{Cite news |url=https://www.cnbc.com/2018/10/15/fidelity-launches-trade-execution-and-custody-for-cryptocurrencies.html | title=Fidelity just made it easier for hedge funds and other pros to invest in cryptocurrencies | first=Kate | last=Rooney | work=CNBC | date=October 15, 2018}}</ref><ref>{{Cite news |last=Leising | first=Matthew | title=Fidelity Applies for Bitcoin ETF With U.S. Securities Regulator |url=https://www.cnbc.com/2018/10/15/fidelity-launches-trade-execution-and-custody-for-cryptocurrencies.html | work=CNBC | date=March 24, 2021}}</ref>
In August 2018, Fidelity introduced mutual funds with no mutual fund fees and expenses.<ref>{{Cite news | url=https://eu.usatoday.com/story/money/2018/08/02/fidelity-offer-fee-free-index-funds/882311002/ | title=Fidelity offers two index funds with zero fees, escalating a fight for customers | first=Adam | last=Shell | work=USA Today | date=August 2, 2018}}</ref>
In May 2019, Fidelity launched cryptocurrency trading to institutional customers.<ref>{{Cite news | url=https://www.cnbc.com/2019/05/06/fidelity-is-reportedly-about-to-offer-cryptocurrency-trading-for-pros-within-a-few-weeks.html | title=Fidelity is reportedly about to offer cryptocurrency trading for pros within a few weeks | last=Fitzgerald | first=Maggie | work=CNBC | date=May 6, 2019}}</ref>
In September 2019, Fidelity completed the corporate spin-off of Eight Roads Ventures, its venture capital division. It was known as Fidelity Growth Partners until 2015.<ref>{{Cite news | url=https://techcrunch.com/2015/07/20/fidelity-growth-partners-becomes-eight-roads-ventures-announces-new-150m-fund/ | title=Fidelity Growth Partners Becomes Eight Roads Ventures, Announces New £150M Fund | first=Mike | last=Butcher | work=TechCrunch | date=July 20, 2015}}</ref> In 2018, Eight Roads launched a $375 million European fund.<ref>{{Cite news | url=https://techcrunch.com/2018/03/20/eight-roads-ventures-europe-iii/ | title=Eight Roads Ventures launches new $375M scale-up fund for European and Israeli startups | first=Steve | last=O'Hear | work=TechCrunch |date=March 20, 2018 |archive-date=2020-02-20 |archive-url=https://web.archive.org/web/20200220045656/http://social.techcrunch.com/2018/03/20/eight-roads-ventures-europe-iii/ |url-status=live}}</ref><ref>{{Cite news |url=https://www.businesstimes.com.sg/garage/fidelity-considering-demerger-of-venture-arm-eight-roads |title=Fidelity considering demerger of venture arm Eight Roads | work=The Business Times |date=2019-06-17}}</ref>
In August 2021, Fidelity announced plans to hire 16,000 employees in 2021,<ref>{{Cite news | url=https://www.bostonglobe.com/2021/08/31/business/fidelity-boosts-hiring-target-16000-year/ | last=Edelman | first=Larry |title=Fidelity Investments boosts hiring target to 16,000 for the year | work=The Boston Globe | date=August 31, 2021}}</ref> including 9,000 during the second half of the year.<ref>{{Cite news | url=https://www.wsj.com/articles/fidelity-is-going-on-a-hiring-spree-11630414800 | last=Baer |first=Justin | title=Fidelity Wants to Add 9,000 Jobs by Year-End | work=The Wall Street Journal | date=August 31, 2021 | url-access=subscription | issn=0099-9660}}</ref>
In April 2022, Fidelity began offering Bitcoin as an investment option in 401(k) plans to participants whose employers have elected to include it in their plan.<ref>{{Cite news | url=https://www.cnn.com/2022/04/26/success/fidelity-bitcoin-401k/index.html | first=Jeanne | last=Sahadi | title=Fidelity will soon offer bitcoin as an option in 401(k)s | work=CNN | date=April 26, 2022}}</ref>
In January 2023, Fidelity acquired Shoobx, a provider of automated equity management operations and financing software which was folded into Fidelity’s Stock Plan Services business.<ref>{{Cite news | url=https://techcrunch.com/2023/01/10/fidelity-snaps-up-fintech-shoobx-after-7-years-without-an-acquisition/ | title=Fidelity makes first acquisition in 7 years, snapping up fintech Shoobx | first=Mary Ann | last=Azevedo | work=TechCrunch | date=January 10, 2023}}</ref>
In January 2024, after receiving approval, Fidelity was one of several issuers that launched a spot Bitcoin exchange-traded fund (ETF).<ref>{{Cite news | url=https://www.reuters.com/technology/decade-long-journey-us-spot-bitcoin-etf-2024-01-10/ | title=The decade-long journey to a US spot bitcoin ETF | first1=Suzanne | last1=McGee | first2=Hannah | last2=Lang | editor-first1=Michelle | editor-last1=Price | editor-first2=Marguerita | editor-last2=Choy | work=Reuters | date=January 11, 2024}}</ref>
In July 2024, after receiving approval, Fidelity was one of several issuers that launched a spot Ethereum exchange-traded fund.<ref>{{Cite news | url=https://www.reuters.com/technology/us-spot-ether-etfs-set-make-market-debut-another-win-crypto-industry-2024-07-23/ | title=US spot ether ETFs make market debut in another win for crypto industry | last1=McGee | first2=Hannah | last2=Lang | editor-first1=Christina | editor-last1=Fincher | editor-first2=Stephen | editor-last2=Coates | work=Reuters | date=July 25, 2024}}</ref>
In April 2025, Fidelity launched no-fee cryptocurrency trading in individual retirement accounts.<ref>{{Cite news | url=https://www.thestreet.com/crypto/markets/fidelitys-new-retirement-plan-lets-you-invest-in-crypto-at-no-fee | title=Fidelity's new IRA lets you invest in crypto at no fee | first=Anand | last=Sinha | work=TheStreet.com | date=April 2, 2025}}</ref>
In January 2026, Fidelity announced that it would launch its own stablecoin, the Fidelity Digital Dollar (FIDD), in February 2026. The coin will premiere on the Ethereum network.<ref>{{Cite web|title=Fidelity Investments' new digital dollar is a massive bet that the future of banking is on the blockchain|url=https://www.coindesk.com/markets/2026/01/28/fidelity-investments-starts-its-own-stablecoin-in-a-massive-bet-that-future-of-banking-is-on-blockchain|website=www.coindesk.com|access-date=2026-01-31|language=en}}</ref>
==Notable mutual funds== Fidelity has three fund divisions: Equity (headquartered in Boston, Massachusetts), High-Income (headquartered in Boston) and Fixed-Income (headquartered in Merrimack, New Hampshire).<ref name=about/>
===Fidelity Contrafund=== The company's largest equity mutual fund is Fidelity Contrafund, which has $145 billion in assets,<ref>{{cite web | url=https://www.morningstar.com/funds/xnas/fcntx/quote | title=Fidelity Contrafund | website=Morningstar, Inc.| date=July 15, 2024}}</ref> making it the largest actively managed mutual fund in the U.S. William Danoff has managed Contrafund since 1990.<ref>{{cite news | url=https://www.bloomberg.com/news/articles/2024-12-13/world-s-biggest-solo-stock-picker-is-having-best-year-since-1991 |title=World's Biggest Solo Stock-Picker Is Having Best Year Since 1991 | first=Loukia | last=Gyftopoulou | work=Bloomberg news | date=December 13, 2024 | url-access=subscription}}</ref>
===Fidelity Magellan=== Fidelity Magellan has $25 billion in assets.<ref>{{cite web | url=https://www.morningstar.com/funds/xnas/fmagx/quote | title=Fidelity Magellan | website=Morningstar, Inc.| date=January 7, 2025 }}</ref> Its current manager is Jeffrey Feingold, who also manages the Fidelity Trend Fund. It was founded by Ned Johnson in 1963 as the Fidelity International Fund and was renamed the Magellan Fund in 1965. The early sales staff of the Magellan Fund were mostly part-time, traveling employees until the 1973–1974 stock market crash led to a severe decline in interest.<ref name=beating>{{cite book | last=Lynch | first=Peter | authorlink=Peter Lynch | title=Beating the Street | edition=Revised |year=1994 |orig-year=1993 |pages=[https://books.google.com/books?id=80wxjQuGCVYC&q=flotilla&pg=PA83 83-84] | place=New York | publisher=Simon & Schuster |isbn=978-0-671-89163-3}}</ref> Magellan was managed by Johnson from May 2, 1963, to December 31, 1971, Lynch from May 31, 1977, to May 31, 1990, and Harry W. Lange from 2005 to 2012. Under Lynch's leadership Magellan averaged a 29% annual return, more than doubling the growth rate of the S&P 500, making it the best-performing mutual fund in history over such an extended period.<ref name=beating/><ref>{{Cite news | url=https://www.alphawealthfunds.com/2022/11/most-of-the-magellan-funds-investors-lost-money/ | title=Most of the Magellan Fund's Investors Lost Money | first=Michael | last=Torrence | date=November 1, 2022}}</ref>
==Legal issues and controversies== ===Conflict of interest with employee/owners' personal investments=== Owners and employees of the company are able to invest in pre-IPO startup companies via the company's subsidiary, F-Prime Capital Partners. An investigation by ''Reuters'' in 2016 identified multiple cases where F-Prime Capital Partners was able to make investments in shares at a fraction of the price later paid by funds managed by Fidelity Investments. Because of regulations, the funds are not allowed to make the same early venture capital investments as F-Prime Capital Partners. However, the funds allegedly made large investments in companies after they go public in which shares are already owned by Fidelity employees via F-Prime Capital Partners.<ref name=richer>{{Cite news | url=https://www.reuters.com/investigates/special-report/usa-fidelity-family/ | title=How the owners of Fidelity get richer at everyday investors' expense | first=Tim | last=McLaughlin | work=Reuters | date=October 5, 2016}}</ref> An example included William Danoff's personal purchase of shares of Alibaba Group for 7 cents each; many shares were later purchased by the fund he manages.<ref>{{Cite news | url=https://fortune.com/2016/10/05/fidelity-danoff-pay-alibaba/ | title=How One Fidelity Fund Manager Made Millions Off Alibaba's IPO for Himself | agency=Reuters | work=Fortune | date=October 5, 2016 | url-access=limited}}</ref> While the practice is not illegal, it poses a corporate conflict of interest.<ref name=richer/><ref>{{Cite news | url=https://riabiz.com/a/2016/10/14/after-fidelity-investments-and-its-owners-get-blasted-by-reuters-for-alleged-high-level-conflicts-of-interest-morningstar-accepts-the-boston-based-giants-explanation | title=After Fidelity Investments and its owners get blasted by Reuters for alleged high-level conflicts of interest, Morningstar accepts the Boston-based giant's explanation | first=Janice | last=Kirkel | work=RIABiz | date=October 14, 2016}}</ref> The same Reuters investigation documents six cases (out of 10) where Fidelity Investments became one of the largest investors of F-Prime Capital companies after the start-up companies became publicly traded. Legal and academic experts said that major investments by Fidelity mutual funds - with their market-moving buying power - could be seen as propping up the values of the investments made by F-Prime Capital, to the benefit of Fidelity insiders.<ref name=richer/>
===Document retention fines=== In February 2007, the NASD, a division of the Financial Industry Regulatory Authority, fined four FMR-affiliated broker-dealers $3.75 million for alleged registration, supervision and e-mail retention violations. The broker-dealers settled without admitting or denying the charges.<ref>{{cite news | url=https://www.reuters.com/article/markets/us/nasd-fines-four-fidelity-broker-dealers-375-mln-idUSN05457298/ | title=NASD fines four Fidelity broker-dealers $3.75 mln | work=Reuters | date=August 10, 2007}}</ref>
In 2004, Fidelity Brokerage paid $2 million to settle charges by the U.S. Securities and Exchange Commission that employees altered and destroyed documents in 21 of its 88 branch offices between January 2001 and July 2002. Fidelity has internal inspections every year to make sure it is complying with federal regulations. Management was accused of pressuring branch employees to have perfect inspections and gave notice of the inspections and that at least 62 employees destroyed or altered potentially improper documents maintained at branch offices including new account applications, letters of authorization and variable annuity forms.<ref>{{cite press release | url=https://www.sec.gov/news/press/2004-103.htm | title=SEC and NYSE File Settled Action Charging Fidelity Brokerage Services for Violating Federal Securities Laws and NYSE Rules in Connection with Document Alteration and Destruction | publisher=U.S. Securities and Exchange Commission | date=August 3, 2004}}</ref>
===Misrepresentations=== In May 2007, NASD fined two Fidelity broker-dealers $400,000 for preparing and distributing misleading sales literature promoting Fidelity's Destiny I and II Systematic Investment Plans, which were sold primarily to U.S. military personnel. As part of the settlement, the FMR affiliates were required to notify Destiny Plan holders that additional shares of the underlying fund can be purchased without paying additional sales charges.<ref>{{cite press release | url=https://www.finra.org/newsroom/2007/nasd-fines-two-fidelity-broker-dealers-400000-distributing-misleading-sales-literature | title=NASD Fines Two Fidelity Broker Dealers $400,000 for Distributing Misleading Sales Literature About Systematic Investment Plans Sold to Military Personnel | publisher=Financial Industry Regulatory Authority | date=May 8, 2007 | access-date=March 16, 2017 | archive-date=March 17, 2017 | archive-url=https://web.archive.org/web/20170317143935/https://www.finra.org/newsroom/2007/nasd-fines-two-fidelity-broker-dealers-400000-distributing-misleading-sales-literature | url-status=dead }}</ref>
===Employee stealing from clients=== In January 2025, the company was fined $600,000 by the Financial Industry Regulatory Authority for lax supervision after an employee stole $750,000 from the accounts of 37 international clients over an eight year period from 2012 to 2020.<ref>{{Cite news | url=https://www.advisorhub.com/fidelity-failed-to-supervise-employee-who-stole-750k-from-stock-plan-clients-finra/ | title=Fidelity Failed to Supervise Employee Who Stole $750K From Stock Plan Clients: Finra | first=Miriam | last=Rozen | work=AdvisorHub | date=January 9, 2025}}</ref><ref>{{Cite news | url=https://www.bizjournals.com/boston/news/2025/03/19/fidelity-investments-600000-fine.html | title=Fidelity fined $600,000 over lax supervision that led to account fraud | first=William | last=Hall | work=American City Business Journals | date=March 19, 2025 | url-access=subscription}}</ref>
===Tardy processing=== In May 2025, the company was fined and censured by federal regulators for taking weeks to complete certain customer transactions that should have taken days.<ref>{{Cite news | url=https://www.bizjournals.com/boston/news/2025/05/20/fidelity-investments-tardy-trading.html | title=Fidelity Investments business fined for tardy trading | first=William | last=Hall | work=American City Business Journals | date=May 20, 2025 | url-access=subscription}}</ref>
===Accepting gifts from brokerages=== In December 2006, the company was fined $42 million after some employees accepted gifts from salespeople of Jefferies Group in violation of the company's policies. The firm was fined an additional $3.75 million in February 2007 and $8 million in 2008. Gifts included private chartered flights, tickets to the 2004 Super Bowl, Wimbledon Championships and the US Open tennis tournament; tickets to Justin Timberlake, U2, and Christina Aguilera concerts; and high-end wines such as 1993 Château Pétrus.<ref>{{Cite news | url=https://www.fnlondon.com/articles/fidelity-pays-penalty-over-gifts-20061222 | title=Fidelity pays $42m penalty over gifts | first=Heide | last=Moore | work=Financial News London | date=December 22, 2006}}</ref><ref>{{Cite news | url=https://www.fnlondon.com/articles/fidelity-fined-for-accepting-gifts-1-20070206 | title=Fidelity fined for accepting gifts | first=Heide | last=Moore | work=Financial News London | date=February 6, 2007}}</ref><ref>{{Cite news | url=https://www.nytimes.com/2008/03/06/business/worldbusiness/06iht-fidelity.1.10761911.html | title=Fidelity is fined $8 million over improper gifts | first=Jenny | last=Anderson | work=The New York Times | date=March 6, 2008 | url-access=limited}}</ref>
==See also== * List of mutual funds in the United States by assets under management * List of electronic trading platforms
==References== {{Reflist}}
==External links== * {{Official website|https://www.fidelity.com/}} * {{Commons category inline}} {{Fidelity Investments}} {{Online brokerages}} {{Major asset management companies}} {{Authority control}}
Category:1946 establishments in Massachusetts Category:American companies established in 1946 Category:Asset management companies Category:Companies based in Boston Category:Fidelity International Category:Financial services companies established in 1946 Category:Investment management companies of the United States Category:Multinational companies headquartered in the United States Category:Mutual funds of the United States Category:Online brokerages Category:Online financial services companies of the United States Category:Privately held companies based in Massachusetts Category:Financial services companies based in Massachusetts