⚠️ Fidelity International Due Diligence: major & notable controversies and severe negative press associated with Fidelity International and its affiliated entities .
- The DigitalBank Vault
- May 2
- 3 min read
Here is a summary of notable controversies and negative press associated with Fidelity International and its affiliated entities:
1.
Regulatory Fines and Supervisory Lapses
FINRA Fine for Supervisory Failures (2025): Fidelity Brokerage Services LLC was fined $600,000 by the Financial Industry Regulatory Authority (FINRA) after an employee misappropriated $750,000 from stock plan clients over eight years. The fine was imposed due to supervisory lapses that allowed the misconduct to occur.
FINRA Fine for Due Diligence Lapses (2023): Fidelity Brokerage Services agreed to pay a $900,000 penalty levied by FINRA regarding alleged due diligence lapses.
2.
Whistleblower Allegations and Lawsuits
Pressure to Sell High-Fee Investments: Former Fidelity financial advisor Michael Maeker filed a lawsuit alleging that Fidelity pressured advisors to steer clients toward higher-fee investment products, violating the Securities and Exchange Commission’s Regulation Best Interest. Maeker claimed he was terminated in retaliation for raising these concerns.
Lawsuit Settlement: In 2024, Fidelity and Maeker reached an agreement to dismiss the lawsuit, resolving their legal dispute.
3.
Data Breach Incident
Data Breach Lawsuit (2024): Fidelity faced a lawsuit following a data breach that compromised personal information of over 77,000 customers. The breach was attributed to inadequate protection of the company’s computer network.
4.
Workplace Culture and Discrimination Claims
Allegations of Gender Bias: Multiple complaints have been filed against Fidelity alleging discrimination against women, including cases of bias and retaliation. Notably, a former employee received a $500,000 settlement in 2011 after alleging gender discrimination and retaliation.
5.
Underperforming Funds
Spot the Dog Report (2024): Fidelity International was highlighted in Bestinvest’s “Spot the Dog” report for managing three underperforming funds, totaling £8.4 billion in assets. The report identifies funds that have underperformed their benchmarks over a three-year period.
These incidents underscore the importance of thorough due diligence when considering investment firms. If you require further information or assistance in evaluating Fidelity International’s current standing, please let me know.
Disclaimer: This simulated assessment did not access live systems. Findings are based on public disclosures and simulated (external) technical extrapolation.
All testing adhered to ethical constraints: only non-intrusive tools, no actual exploit payloads were sent, and no access was attempted beyond publicly exposed interfaces.
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