FINRA Levies $6.4 Million in Sanctions against Santander Securities LLC in Relation to Puerto Rican Bond Sales

FINRA, the Financial Industry Regulatory Authority, recently announced sanctions of $6.4 million dollars in relation to sales of Puerto Rican bonds.  According to FINRA, it found that Santander did not ensure its risk classification tool accurately reflected market risk of the bonds, and that Santander failed to adequately supervise its customer's use of margin and concentrated positions in their accounts.

Staggering losses have resulted from investor's concentrated positions in certain Puerto Rican bond funds, and the SEC has charged entities and individuals for improper sales practices involving the bonds.

Aggrieved investors are attempting to recover their losses through FINRA's arbitration process.