Santander Securities LLC—Failure to Have a Reasonably Designed Supervisory System and Procedures

investment fraud attorneysSantander Securities LLC Allegedly Failed to Have a Reasonably Designed Supervisory System and Procedures Relating to Sales of Puerto Rico Municipal Bonds

Santander Securities LLC allegedly failed to maintain a reasonably designed supervisory system and procedures relating to sales of Puerto Rico Municipal Bonds (PRMB’s) to Puerto Rico customers, according to recent FINRA Letter of Acceptance, Waiver and Consent.

Santander Securities LLC also allegedly failed to have adequate systems and procedures in place to monitor for the appropriate use of margin in connection with the purchase of PRMBs or to monitor for potentially over-concentrated positions in PRMBs and Puerto Rico Closed-End Funds (PRCEFs), the AWC notes.

Santander Securities LLC also allegedly did not have adequate systems and procedures in place to monitor for the appropriate use of margin in connection with the purchase of PRMBs or to monitor for potentially over-concentrated positions in PRMBs and PRCEFs, according to the AWC.

Santander Securities LLC Fined $2 Million and Ordered Restitution of Approximately $4.3 Million in Connection with Certain Alleged Solicited Purchases of Puerto Rico Municipal Bonds

Santander Securities LLC was allegedly unable to adequately monitor for potential conflicts of interest where customer orders were filled through positions in Puerto Rico employee brokerage accounts, the AWC reports.

As a result of the aforementioned behavior, Santander Securities LLC allegedly violated MSRB, NASD and FINRA Rules, and hence has been fined $2 million by FINRA and FINRA has also ordered $4.3 million in restitution in connection with certain alleged solicited purchases of PRMB’s, the AWC notes.

It should also be noted that Santander accepted and consented, without admitting or denying the FINRA findings solely for the purposes of the FINRA proceeding and any other proceeding brought by or on behalf of FINRA, according to the AWC.

The Peiffer Rosca Wolf Securities Lawyers Often Assist Investors

The Peiffer Rosca Wolf securities lawyers assist investors who lose money as a result of inadequate supervisory systems. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of inadequate supervisory systems are encouraged to contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1206 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.