Tramont Guerra & Nunez, PA Launches Investigation of Potential Legal Claims in Light of FINRA $2 Million Fine of Santander Securities for Supervisory Deficiencies for Structured Products

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Recommendations to concentrate investments in reverse convertible notes is a cause of action to recover investment losses that may be available to investors against Santander Securities in an individual securities arbitration claim filed with FINRA.

The Securities Law Firm of Tramont Guerra & Nunez, P.A. (TGN) announces an investigation of potential legal claims on behalf of investors who held brokerage accounts at the Santander Securities branch office located in Guaynabo, Puerto Rico. On February 28, 2011, Santander Securities Corporation submitted a Financial Industry Regulatory Authority (FINRA) Letter of Acceptance, Waiver and Consent (AWC) No. 20080117193-01 for the purpose of settlement of the allegation of rule violation by FINRA for the sale of structured products, including reverse convertible notes.    According to the AWC, Santander Securities consented to a censure and a $2 million fine. Santander Securities agreed to the AWC on the condition that if accepted, FINRA would not bring any further action based on the same factual findings. According to FINRA, the review period for alleged violations was from September 2007 through September 2008 during which time customers of Santander Securities invested more than $130 million in reverse convertible notes and Santander Securities earned more than $1.7 million in commissions from the sale of these securities. The Financial Industry Regulatory Authority, (FINRA) is a self regulating organization with sales practice rules and regulations that govern Santander Securities business conduct and safeguard the investing public.

According to TGN, many financial advisors recommended reverse convertible notes were suitable investments for conservative investors with current income objectives. Full-service brokerage firms are obligated to give, and investors are entitled to rely upon brokerage firms for, competent, suitable investment advice for investments made in customer accounts. The failure to supervise brokerage account activity, unsuitable investment advice or fraudulent misrepresentations and omission of material facts are causes of action that may be available to investors against their full-service brokerage firm in an individual securities arbitration claim filed with the Financial Industry Regulatory Authority, FINRA.

The Securities Law Firm of Tramont Guerra & Nunez, PA, is a nationally recognized, bilingual securities law firm. To request a confidential consultation from a TGN attorney to determine whether you have a viable individual securities arbitration claim for investment losses that exceed $250,000 from a full service brokerage account, contact us on our website. To speak directly with an attorney, call (800) 578-0137 and ask for David Chacin, Esquire.

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