FINRA Fines Santander $2M For Debt Investments

Law360, New York (April 12, 2011, 2:32 PM EDT) -- The Financial Industry Regulatory Authority announced Tuesday that it had fined Santander Securities Corp. $2 million for pushing debt securities on customers without properly assessing the suitability of the perilous investments.

Santander, a Puerto Rico-based broker-dealer and affiliate of Banco Santander SA, failed to effectively monitor customer accounts and safeguard against imprudent and excessive investments in reverse convertible securities, leading customers to lose millions of dollars on shoddy investment advice, according to FINRA.

The broker-dealer has reimbursed more than $7 million to customers for losses that...
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