Popular Securities, Inc. n/k/a Popular Securities, LLC, was fined $125,000 by the Financial Industry Regulatory Authority (FINRA) for failure to supervise violations involving over-concentration of investments in Puerto Rico municipal bonds and closed-end bond funds in many of its customers’ accounts.
Without admitting or denying the findings, Popular consented to the sanctions and to FINRA’s findings that between July 1, 2011 and June 30, 2013, it failed to supervise its customers’ Puerto Rico bond fund investments, even after the bond rating had been downgraded to junk bond status. Following the junk bond downgrade, FINRA found that Popular Securities’ customers continued to purchase concentrated positions of the Puerto Rico securities.
FINRA rules require brokerage firms to establish and implement a supervisory system in order to protect investors from unnecessary losses and/or broker misconduct. The implementation of these rules requires supervisors to monitor brokerage firm employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, as well as the brokerage firm’s own policies and procedures. If broker dealers fail to implement and enforce these protective supervisory measures, they may be held liable to investors for losses. As a result, investors who have suffered losses stemming from a stockbroker or registered representative’s misconduct can bring forth claims to recover damages against brokerage firms like Popular Securities, which have a duty to supervise its employees in order to prevent unnecessary investor losses.
Have you suffered losses in Puerto Rico municipal bonds or closed-end bond fund investments? The Law Offices of Robert Wayne Pearce, P.A. understands the complexity of these UBS Puerto Rico bond funds and knows that your hard-earned investment monies are at stake when brokers make unsuitable recommendations and when brokerage firms fail to supervise its employees. If you have found yourself with an investment account over-concentrated in Puerto Rico municipal bonds and/or closed-end bond funds, or if you borrowed monies from UBS Puerto Rico and used your investments as collateral for those loans, we may be able to help you recover your losses.
We have associated with an attorney in San Juan, Puerto Rico, namely Lcdo. Julio Cayere Quidgley, who will meet with you and discuss your case at no charge. Mr. Pearce and Mr. Cayere are currently representing numerous clients with claims against UBS Puerto Rico, Santander Securities, Popular Securities, Merrill Lynch and Oriental for misrepresentations, overconcentration and/or unsuitable recommendations of its bond funds.
For dedicated representation by a law firm with over 35 years of experience in all kinds of securities, commodities and investment disputes, contact us by telephone at 561-338-0037 or toll free at 800-732-2889, via e-mail or visit our website at www.secatty.com We may also be able to arrange a meeting with you at offices located in San Juan, Puerto Rico or in Boca Raton, Fort Lauderdale, Miami and West Palm Beach, Florida and elsewhere.