Banco Santander, S.A. (ADR) (NYSE:SAN) Fined $200 Million for Advice Fallings
Dallas, Texas 03/31/2014 (ustradevoice) – Banco Santander, S.A. (ADR) (NYSE:SAN) has received the wrath of a British watchdog, consequently fined $20.5 million for accusations levelled against it on financial advice it offered two years ago to its customers. This is part of the watchdog efforts of clamping down on misconducts carried out by banks on matters related to financial advice.
The watchdog in its verdict noted that the bank failed to prevent customers from getting misleading information from advisers as well as not carrying out regular checks on customers. The bank is also accused of not ensuring its advisers were in a position to give proper advice. FCA continues to clamp down on consumer banking services after issues regarding miss-selling, highlighted the fallings of the market in the past.
Accusations against Banco Santander
Banco joins Lloyds Banking Group (LON:LLOY) which was fined 28 million pounds in December last year for promising its under pressure employees incentives if they reached specific targets in their day to day operations. Customers had accused the bank of failing to advise them on how to wisely manage their finances.
The Spanish bank fine was reduced by 30% because it agreed to settle at an early stage into the investigation. The bank also closed its investment arm as a result of the probe.
Banco Santander Spanish Fine
Last month, Banco Santander, S.A. (ADR) (NYSE:SAN) was also fined $23.3 million over issues related to how it carried the sale of its convertible bonds amidst the economic crisis. The bank in this case was accused of breaking the rules on matters relating to how it related with its clients as well as the information it had on some of the applicants.
Santander share price
Banco Santander, S.A. (ADR) (NYSE:SAN)’s share has been performing well in the market having risen by 15% over the past 12 months beating the FTSE 100. Banco Santander was up on Friday trading session by 1.51% closing the week at an impressive high of $9.39, close to its 52 week high of $9.40.