FINRA Reports on Effective Practices for Digital Investment Advice On March 15, 2016, the Financial Industry Regulatory Authority (FINRA) published a new report titled, Report on Digital Investment Advice. FINRA issued the report “…to remind broker-dealers of their obligation under FINRA rules as well as to share effective practices related to digital investment advice, including with respect to technology management, portfolio development and conflicts of interest mitigation.” The FINRA report “…does not create any new legal requirements or change any existing broker-dealer regulatory obligations. Throughout the report, we identify practices that we believe firms should consider and tailor to their business model,” according to its introduction. The report shares FINRA’s observations and covers the following broad topics: • A brief history of digital investment advice • Governance and supervision of algorithms • Client portfolio construction and monitoring, and conflicts of interest • Investor profiling and suitability • Assessing risk tolerance • Rebalancing • Training and education • Lessons for investors The practices and rules referenced in the FINRA report are intended for FINRA-member firms. Advisers and other financial professional interested in digital technology may find the report to be a helpful resource. For access to the news release and the full report, visit www.finra.org. 1 . 200 SEAPORT BOULEVARD Z281 BOSTON, MA 02210 For Investment Professional use only. Not for distribution to the public as sales material in any form. The content provided herein is general in nature and is for informational purposes only. This information is not individualized and is not intended to serve as the primary or sole basis for your decisions as there may be other factors you should consider. Fidelity Investments does not provide advice of any kind.

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