The Financial Industry Regulatory Authority (FINRA) has fined Fidelity Investments $350,000 for overcharging more than 20,000 customers a total of $2.4 million.

Fidelity was represented by David Boch of Morgan Lewis & Bockius in Boston.

FINRA charged that “Fidelity did not have reasonable supervisory systems or procedures to ensure that customers were charged accurate fees for accounts managed by third-party investment advisors, which resulted in erroneous and duplicate fees charged in certain customer accounts utilizing asset-based pricing, duplicate fees in certain customer accounts managed by third-party wrap providers, and erroneous markups on certain fixed income investments.”

According to the settlement with FINRA, in one program, Fidelity “did not accurately reflect the fees charged to customers.”

Fidelity “identified mutual funds, alternative investments, certificates of deposit (“CDs”), bankers acceptance, collateralized mortgage obligations, UITs, precious metals and international securities that settle in local currency as non-chargeable” when in fact the securities were treated by the Fidelity as chargeable assets to the detriment of certain customers.”

“As a result, from January 2006 until December 2012, customers who purchased these securities were charged fees even though [Fidelity] identified the securities as non-chargeable.”

In this instance, Fidelity remediated 4,944 customer accounts a total of $1,333,851.