History Of Santander Investment Securities Inc
Santander has been a member of FINRA since December 1994. Santander is wholly
owned by Santander Holdings USA, Inc., which in turn is wholly owned by Banco
Santander, S.A., a Spanish banking corporation. Santander’s principal place of business is
in New York, NY and it employs 136 registered representatives. Santander’s business
activities include investment banking, institutional sales, trading, and offering research
reports of Latin American equity securities. Respondent does not have any relevant
Santander Investment Securities Inc Report
This matter originated from a Rule 4530 disclosure report that Santander filed with
FINRA in February 2019.
FINRA Rule 3110(b) and its predecessor, NASD Rule 3010(b), require each member to
“establish, maintain, and enforce written procedures to supervise the types of business in
which it engages and the activities of its associated persons that are reasonably designed
to achieve compliance with applicable securities laws and regulations, and with
applicable FINRA rules.” FINRA Rule 3110(b)(4) requires member firms to review the
incoming and outgoing electronic correspondence of its associated persons relating to its
securities business. Before December 1, 2014, NASD Rule 3010 imposed similar
requirements. Violations of FINRA Rule 3110 and NASD Rule 3010 also constitute
violations of FINRA Rule 2010.
Prior to the relevant period, when Santander hired a new employee, the firm’s
information technology staff created a new user email account and the emails were stored
on its local server. Information technology staff also updated the system so the
employee’s emails from the local server were journaled to its email review platform. In
January 2014, Santander changed its email server. Following the server switch, the
existing process to ensure emails were journaled to the email review platform from the
new server did not work as it had before. Santander had no process in place to ensure that
emails from the new server were journaled to its email review platform as intended. For
example, the firm did not conduct an initial test to make sure that the process worked and
that each new employee’s emails were in fact journaled to the review platform. Nor did
the firm monitor the volume of email ingested into its review platform for irregularities or
conduct any reconciliation of the email addresses to be monitored with the emails that
were ingested. As a result, the firm did not discover the issue until January 2019.
The firm identified this issue in January 2019, when searching for a specific email within
its review platform system. After identifying the issue, Santander self-reported it pursuant
to Rule 4530. The firm then investigated the underlying causes of the failure and
implemented changes to its policies and procedures to prevent a similar issue going
forward. The firm also conducted a lookback review of a sample of the emails not
During the relevant period, the firm failed to journal approximately 6 million emails from
109 employee email accounts to its email review platform for supervisory review. In
2018, this failure affected more than three quarters of the firm’s employees subject to
Therefore, Santander violated NASD Rule 3010 (for conduct before December 1, 2014),
FINRA Rule 3110 (for conduct between December 1, 2014 and January 24, 2019) and
Penalties, Punishments & Sanctions
■ a censure and
■ a $150,000 fine.
Respondent agrees to pay the monetary sanction upon notice that this AWC has been
accepted and that such payment is due and payable. Respondent has submitted an
Election of Payment form showing the method by which it proposes to pay the fine
Respondent specifically and voluntarily waives any right to claim an inability to pay, now
or at any time after the execution of this AWC, the monetary sanction imposed in this
The sanctions imposed in this AWC shall be effective on a date set by FINRA
Santander Investment Securities Inc Review
From January 2014 through January 2019, Santander failed to capture approximately 6
million emails from 109 employee email accounts for supervisory review due to a coding
error. The error was not identified and instead persisted because Santander did not
reasonably monitor and test its system to ensure that emails were properly routed to the
firm’s email review platform. As a result, Santander violated NASD Rule 3010 and
FINRA Rules 3110 and 2010.1
1 FINRA Rule 3110 superseded NASD Rule 3010 on December 1, 2014. Because the conduct at issue in this AWC occurred before and after this date, both rules are applicable.
How To Spot A Fraud Finance Advisor (Infographic)
Help For Victims Of Santander Investment Securities Inc
If you have lost funds because of misrepresentation, unsuitable investment, or unsuitable investment strategy from Santander Investment Securities Inc. Then you can take legal action and get justice. Fraud, Malpractice & dereliction of duty should not be taken lightly, especially in this industry. We highly suggest that you notify authorities or seek legal action if your financial advisor or brokerage firm fails to abide by FINRA’s rules are regulations.
Similar report: Joseph D. Olheiser
Financial advisors are regulatory & legally obligated to suggest (recommend) the most suitable investments/investment strategies to their clients. Their suggestions should have their client’s best interests and should be appropriate for their client’s goals and needs. Similarly, the brokerage firm which hires financial advisors also has a regulatory & legal obligation to keep a close watch and supervise their Financial Advisors’ practices & behavior. They need to make sure that the financial advisor is not being manipulative or having an unreasonable bias towards certain investments. If the financial advisor and/or the brokerage firm breaches these duties, then the client/customer may be entitled to a full or partial recovery of their losses.
Financial advisors need to have the interest of their clients when giving suggestions related to investments and investment strategies. Reasonable basis suitability requires the advisor to do their best to analyze & identify the risks and rewards associated with their suggested investment and/or investment strategy.
NAME has been involved in fraudulent activities and is an unsafe professional entity. We strongly recommend you avoid any association with such a shady figure.
- Shady Activity
- Swindling Activity Reported By Clients
- Under Govt. Organization's Radar
- High Risk of Fraud