News  Santander Securities to Reimburse Seniors for Deceptive Marketing Practices

Boston — Santander Securities LLC (SSLLC) will pay $100,000 and reimburse clients to resolve allegations of deceptive marketing practices relating to the sale of unsuitable variable annuity products to Massachusetts seniors, Attorney General Maura Healey announced today.

 Under the terms of an assurance of discontinuance filed in Suffolk Superior Court, SSLLC will reimburse clients who purchased variable annuity products that were unfairly represented and were charged upon cancellation, and offer to pay the surrender charges of any customer who indicated confusion between SSLLC and Santander Bank. SSLLC will also revise its business practices relating to disclosures and the completing of suitability paperwork. 

 “Many seniors rely on the advice of financial professionals to meet their retirement needs and ensure their financial security,” said Attorney General Healey. “This settlement ensures that this company reimburses seniors impacted by its misrepresentations and that changes are made going forward.”

 SSLLC employs registered representatives to offer and sell securities products that are not FDIC insured, and to provide advisory services in Santander Bank locations, an affiliated entity. The AG’s Office alleges that SSLLC violated state regulations by failing to adequately supervise the sale practices of its employees, which resulted in the sale of unsuitable variable annuity products. SSLLC also allegedly failed to take adequate steps to minimize the foreseeable customer confusion that resulted from SSLLC’s sale of securities products that were not FDIC insured in close proximity to FDIC insured banking services and products.   

This settlement is part of AG Healey’s ongoing review of networking arrangements practices between banks and affiliated brokerage firms. 

This investigation was handled by Assistant Attorney General Elizabeth Nsahlai and Legal Analyst Maggie Wallace, both of the AG’s Insurance and Financial Services Division.