Regulator hits Fidelity with $400,000 fine

Two business units of Fidelity Investments were fined $400,000 by securities regulator NASD.

NASD said the Boston mutual-fund giant was fined over what NASD called ''misleading sales literature'' for certain investment plans mainly sold to US military personnel.

In a statement today NASD, formerly known as the National Association of Securities Dealers, said Fidelity did not admit or deny the charges but agreed to the fine as part of a settlement.

NASD said it found between 2003 and 2006 the two Fidelity units distributed faulty literature such as a brochure that didn't properly compare investment returns with the Standard & Poor's 500 index.

"These faliures were aggravated by the fact that the plans were sold primarily to military personnel, who often have limited time to study the marketing materials for investment products,'' said NASD enforcement chief James S. Shorris in a statement.
(By Ross Kerber, Globe staff)