Fidelity, Peter Lynch get a rap on knuckles from SEC
The US Securities and Exchange Commission (SEC) has charged Fidelity Investments and it’s former superstar fund manager Peter Lynch along with 12 other current / ex-employees for improper practices by way of accepting travel, entertainment and other gifts from Wall Street brokers. The SEC also ordered Fidelity to hire an independent consultant to review the firm’s policies on equity trading operations, conflicts and gifts.
Fidelity agreed to pay $8 million and Lynch, now a vice-chairman who mentors new employees, agreed to pay about $20,000 to settle these charges, though neither admitted to or denied them.
Lynch, as is quite well known, ran Fidelity’s flagship Magellan Fund from 1977 to 1990 delivering fantastic returns ($1000 invested in 1977 was worth $28,000 by the time he retired in 1990). He also authored two bestsellers, One Up on Wall Street, and Beating the Street.
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