The National Association of Securities Dealers today announced that it has fined four Boston-based Fidelity broker-dealers a total of US$3.75 million for registration, and other sorts of violations.

It found that the brokers improperly maintained NASD registrations for 1,100 individuals, failed to assign registered supervisors to 1,000 individuals, failed to retain the email of 1,900 registered individuals, and other electronic recordkeeping failures. The regulator also ordered the four broker-dealers to conduct comprehensive audits of the firms’ systems, policies and procedures relating to registration and electronic recordkeeping.

The Fidelity broker-dealers settled the action without admitting or denying the charges, but consented to the entry of NASD’s findings.

The NASD also found that, in connection with the receipt of gifts and entertainment, Fidelity Distributors Corp., the principal underwriter of the Fidelity family of mutual funds, failed to supervise certain registered individuals for compliance with Fidelity’s ethics and conflicts of interest policies applicable to all Fidelity employees. These individuals worked as traders for FMR Co., the investment advisor to the Fidelity family of funds, but were registered with FDC.

In addition to FDC, the other firms charged were Fidelity Brokerage Services LLC, the introducing broker-dealer for all of Fidelity’s retail customer accounts; Fidelity Investments Institutional Services Company, Inc., which markets non-retirement and retirement plan products and services; and National Financial Services LLC, the clearing broker for FBS and other introducing firms.

“It is inexcusable that four affiliated brokerage firms would fail to comply with essential registration, supervision and email requirements,” said James Shorris, NASD executive vice president and head of enforcement. “These failures were especially significant here because they permitted an environment where improperly registered employees of a Fidelity investment advisor were able to engage in conduct that created actual or apparent conflicts of interest involving the employees, Fidelity and its fund customers.”