At the Close of the Investigation that Started It All, an Update on FINRA’s Gift and Entertainment Rulemaking
27 Mar 2008
Nathan J. Greene,
Paul S. Schreiber,
Charles S. Gittleman,
Russell D. Sacks,
M. Holland West
The Securities and Exchange Commission appears to have concluded its multi-year investigation of the gift and entertainment relationships between traders at Fidelity Management & Research and the brokerage firms executing Fidelity’s securities trades. The agency did so with settlements with Fidelity, which agreed to an $8 million fine, and with a number of the firm’s traders and executives. Ten more Fidelity traders will be defendants in a civil trial before an SEC administrative law judge. The combination of the Fidelity name and the details offered about the lavish gifts and entertainment involved probably would have attracted media interest in any event, but the decision to bring (and settle) charges against legendary Fidelity Magellan Fund portfolio manager Peter Lynch assured front-page coverage.
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