Fidelity Shareholders to Vote on ‘Genocide-Free’ Policy Today
March 19, 2008
Shareholders in a number of large Fidelity mutual funds, most notably the $73 billion Contrafund, succeeded in forcing a proxy vote that will take place later today on whether the company should institute a “genocide-free” investment policy, the Associated Press reports. The unbinding measure is unlikely to pass, however.
Meanwhile, earlier this month, on March 5, Fidelity settled with the Securities and Exchange Commission over the investigation into whether the firm improperly accepted gifts, tickets and invitations to parties from large brokerage firms, including Jefferies. The case, which came colorfully to light three years ago with revelations of a jet, a Miami bachelor party and a dwarf, is now closed.
Fidelity has posted a statement on its public website noting that the $8 million settlement involved only 13 employees. “In the three years since this misconduct came to light,” the fund giant’s statement reads, “Fidelity has taken a number of remedial actions to back up its commitment that these types of activities shall not recur, including disciplining the individuals involved.”
Fidelity added that the individuals cited in the SEC’s investigation have either been removed from the trading desk or have since left the firm. Also, as the SEC noted in its March 5 settlement, Fidelity noted that it has “enhanced appropriation policies, added new management oversight on the trading desk and conducted extensive training with employees.”
For more information on related topics, visit the following:
