I read your comments about Fidelity and their preparation and was alarmed enough to e-mail the company (I have 3 brokerage accounts with Fido holding virtually all our investments) and they responded immediately with the following:
Ms. Sullivan,
Thank you for your message regarding our computer systems.ÿ We
appreciate your taking the time to contact us online.
We understand the diligence with which our computer systems must be
maintained to accommodate the new millennium.ÿ We have, for some time,
been taking steps to ensure a smooth transition into the new century so that our customers will experience no interruption in service, or
problems with their accounts.
Fidelity has already begun to identify solutions, increase awareness,
and provide the leadership that will prepare the organization for the
turn of the century.ÿ We are currently analyzing and enhancing the
millions of lines of code throughout Fidelity and evaluating all of
Fidelity's enhanced systems - from the mainframe to the desktop -
guaranteeing that Fidelity Investments is ready for the year 2000.ÿ In
addition, we are reviewing the legal concerns surrounding compliance
that must be taken into consideration, as each vendor utilized by the
organization may approach the Year 2000 differently.
In fact, Fidelity has completed an internal inventory and review of its applications, and has also undertaken an extensive review and
communication program with its technology vendors and data providers.
An enterprise-wide program was launched in early 1996 and is well on its way of ensuring firm-wide Year 2000 compliance by the end of 1998.
We are working to ensure Year 2000 compliance throughout the Fidelity
Brokerage family of Application Systems (FBSI).ÿ Our goal is to ensure
that FBSI can accommodate 12/31/99 processing and to have completed the Year 2000 conversion by 12/31/98.ÿ During the conversion process, aswell as after, we will be utilizing integrated application testing,
critical operating system testing, vendor product testing, street
testing, disaster recovery testing and vendor bug fixes necessary for
Year 2000 certification, as well as any post Year 2000 certification.ÿ
>From a corporate perspective, Fidelity has allocated the financial,
technical and management resources necessary to meet our objectives.
With a current firm-wide staff in excess of 300 people, the FIDELITY
2000 project has leveraged internal application experts, and recruited
additional external resources where appropriate.ÿ We have also engaged
Year 2000 third-party expertise to augment our internal staff.
Substantial financial resources have been budgeted for the effort with
additional funds committed as required to complete system and
applications conversions in a timely manner.ÿ
Fidelity has implemented a strategic and integrated plan to verify
compliance, not only for its internal systems and applications but for
its external business partners, data providers, and other organizations
in the financial services industry.ÿ This inter-dependence makes it
imperative that Fidelity concern itself not only with its internal
business processes and therefore is participating with industry trade
groups, such as the Security Industry Association (SIA), to respond to
the Year 2000 issue.ÿ In particular, Fidelity has joined the Data
Management Division (DMD), or technology arm, of the SIA in its efforts
to assure that member firms have the ability to process their business
correctly into the Year 2000.ÿ The DMD/SIA is pursuing a pre-2000 street
test of Year 2000 processing to validate critical member firms
interaction and processing.ÿ Fidelity plans not only to participate but
also take a lead in this test effort.
Due to these early initiatives, Fidelity is currently well positioned in
its mission to ensure seamless processing for all Fidelity systems and
applications relating to Year 2000 issues, resulting in uninterrupted
business operations and service to Fidelity customers.ÿ
We hope to provide more information regarding this subject via our Web
site and Focus magazine as we get closer to turn of the century.
Again, we appreciate your message.ÿ If you have further questions or
comments, feel free to send another message anytime.ÿ We look forward to
hearing from you.
Andrew Harman
Fidelity Brokerage Services, Inc., Member NYSE, SIPC |
