NASD has fined two Fidelity broker/dealers 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. NASD found that between January 2003 and January 2006, Fidelity Investments Institutional Services Company, Inc. of Smithfield, Rhode Island and Fidelity Distributors Corporation of Boston, Massachusetts violated NASD advertising rules by preparing and distributing various pieces of misleading sales literature, including skewed performance claims. The $400,000 fine will be paid to the NASD Investor Education Foundation (a tax-exempt, non-profit organization) to help fund its Military Financial Education Campaign, launched in February 2006. As part of the settlement, for the next five years, the two B/Ds are also required to notify Destiny Plan holders who want to increase their investments in existing Destiny Plans that additional shares of the underlying fund can be purchased outside the Destiny Plans without paying the additional creation and sales charges of up to 50 % on the first year's payments…
The broker/dealers of ING plan to lower fees that their advisors pay on two core advisory programs–Prime and Preferred Asset Management–for three of its retail B/Ds: ING Financial Partners, Multi-Financial Securities, and Financial Network Investment Corporation. Administrative fees with the new structure are as low as 4.5 basis points on total assets under management and 1.5 basis points for individual accounts. The lower fee structure does not impact customer fees, which are determined by individual advisors…
