popular securities, llc

Disclosure Events 18
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Main Office Location
208 AVENUE PONCE DE LEON POPULAR CENTER SUITE 1200 SAN JUAN, PR 00918-1035 Regulated by FINRA Florida Office
Mailing Address
208 AVENUE PONCE DE LEON POPULAR CENTER SUITE 1200 SAN JUAN, PR 00918-1035
This firm is a brokerage firm and an investment adviser firm. For more information about investment adviser firms, visit the SEC's Investment Adviser Public Disclosure website at:
Business Telephone Number
Report Summary for this Firm
This report summary provides an overview of the brokerage firm. Additional information for this firm can be found in the detailed report.
Disclosure Events
Brokerage firms are required to disclose certain criminal matters, regulatory actions, civil judicial proceedings and financial matters in which the firm or one of its control affiliates has been involved.
Are there events disclosed about this firm? Yes
The following types of disclosures have been reported:
Type Count
Its fiscal year ends in December.
Firm History
Information relating to the brokerage firm's history such as other business names and successions (e.g., mergers, acquisitions) can be found in the detailed report.
Firm Operations
Is this brokerage firm currently suspended with any regulator? No
This firm conducts 22 types of businesses.
This firm is affiliated with financial or investment institutions.
This firm has referral or financial arrangements with other brokers or dealers.
This firm is registered with:
• the SEC • 1 Self-Regulatory Organization • 35 U.S. states and territories
www.finra.org/brokercheck User Guidance
1©2021 FINRA. All rights reserved. Report about POPULAR SECURITIES, LLC
CRD#
This section provides the brokerage firm's full legal name, "Doing Business As" name, business and mailing addresses, telephone number, and any alternate name by which the firm conducts business and where such name is used.
Firm Profile
POPULAR SECURITIES, LLC
(787)766-4200
Regulated by FINRA Florida Office
Other Names of this Firm
Name Where is it used
POPULAR ONE PR
This section provides information relating to all direct owners and executive officers of the brokerage firm.
Direct Owners and Executive Officers
Firm Profile
Position Start Date
Does this owner direct the management or policies of the firm?
POPULAR, INC.
HOLDING COMPANY
Is this a domestic or foreign entity or an individual?
Legal Name & CRD# (if any):
Position
Position Start Date
ACOSTA-ASHBY, MARLA MARIE
Less than 5%
Position
Firm Profile
Is this a public reporting company?
Less than 5%
Position Start Date
CARRION, RICHARD L
Position
Position Start Date
COLON ORTIZ, ROSA ANGELA
DIAZ DEL LLANO, BEATRIZ L
IndividualIs this a domestic or foreign entity or an individual?
Firm Profile
Position Start Date
PRINCIPAL FINANCIAL OFFICER
Less than 5%
Position
Position Start Date
FERRER, JAVIER DAVID
Position
Position Start Date
GUERRERO PRESTON, JUAN O
Firm Profile
No
Position
Position Start Date
MERHEB-EMANUELLI, JOSE ALFREDO
Position
Position Start Date
TORO LAVERGNE, JAIME ANTONIO
PRESIDENT AND ELECTED MANAGER
Position
Firm Profile
Position Start Date
Less than 5%
Position Start Date
VAZQUEZ CAMUNAS, CARLOS JOSE
This section provides information relating to any indirect owners of the brokerage firm.
Indirect Owners
Firm Profile
No information reported.
This section provides information relating to any successions (e.g., mergers, acquisitions) involving the firm.
01/01/2014Date of Succession:
8096Predecessor CRD#:
Description THE FIRM WAS A CORPORATION AND CONVERTED TO A LLC FOR TAX EFFICIENCY PURPOSES. THERE ARE NO CHANGES TO THE FIRM'S BUSINESS LINES, PERSONNEL, SUPERVISORY STRUCTURE, SYSTEMS, FINANCES OR WRITTEN SUPERVISORY PROCEDURES ("WSPS"). POPULAR SECURITIES, LLC IS ASSUMING SUBSTANTIALLY ALL OF THE ASSETS AND LIABILITIES OF POPULAR SECURITIES, INC. THERE IS NO SUBSTANTIAL CHANGE IN OWNERSHIP AND/OR CONTROL.
01/01/2014Date of Succession:
8096Predecessor CRD#:
Description THE FIRM WAS A CORPORATION AND CONVERTED TO AN LLC FOR TAX EFFICIENCY PURPOSES. THERE ARE NO CHANGE TO THE FIRM'S BUSINESS LINES, PERSONNEL, SUPERVISORY STRUCTURE, SYSTEMS, FINANCES OR WRITTEN SUPERVISORY PROCEDURES ("WSPS").
Registrations This section provides information about the regulators (Securities and Exchange Commission (SEC), self-regulatory organizations (SROs), and U.S. states and territories) with which the brokerage firm is currently registered and licensed, the date the license became effective, and certain information about the firm's SEC registration.
This firm is currently registered with the SEC, 1 SRO and 35 U.S. states and territories.
SEC Registration Questions
A broker-dealer:
A government securities broker or dealer only:
This firm has ceased activity as a government securities broker or dealer:
Yes
Yes
No
No
SEC Approved 11/16/1979
FINRA Approved 02/13/1980
Florida Approved 11/13/1997
Georgia Approved 01/02/2004
Illinois Approved 11/06/1997
Indiana Approved 07/31/2007
Iowa Approved 11/06/2007
Kansas Approved 04/19/2004
Louisiana Approved 03/25/2019
Maryland Approved 04/06/2004
Massachusetts Approved 08/04/2004
Michigan Approved 04/09/2004
Mississippi Approved 01/09/2007
Nevada Approved 06/23/2010
Virginia Approved 07/07/2006
U.S. States & Territories
Status Date Effective
Washington Approved 03/14/2007
Wisconsin Approved 11/15/2007
Firm Operations
Types of Business This section provides the types of business, including non-securities business, the brokerage firm is engaged in or expects to be engaged in.
Other Types of Business
This firm does not effect transactions in commodities, commodity futures, or commodity options. This firm does not engage in other non-securities business.
This firm currently conducts 22 types of businesses.
Types of Business
Broker or dealer retailing corporate equity securities over-the-counter
Broker or dealer selling corporate debt securities
Underwriter or selling group participant (corporate securities other than mutual funds)
Mutual fund underwriter or sponsor
Mutual fund retailer
Municipal securities dealer
Municipal securities broker
Solicitor of time deposits in a financial institution
Put and call broker or dealer or option writer
Investment advisory services
Broker or dealer selling tax shelters or limited partnerships in primary distributions
Broker or dealer selling tax shelters or limited partnerships in the secondary market
Non-exchange member arranging for transactions in listed securities by exchange member
Trading securities for own account
Private placements of securities
Broker or dealer selling interests in mortgages or other receivables
Broker or dealer involved in a networking, kiosk or similar arrangment with a: bank, savings bank or association, or credit union
Broker or dealer involved in a networking, kiosk or similar arrangment with a: insurance company or agency
Other - POPULAR SECURITIES, LLC MAY OCCASSIONALLY POSITON CERTIFICATES OF DEPOSITS AND MAY ENGANGE IN REVERSE REPURCHASE AGREEMENTS.
Non-Securities Business Description:
Firm Operations
Clearing Arrangements
This firm does not hold or maintain funds or securities or provide clearing services for other broker-dealer(s).
Introducing Arrangements
This firm does refer or introduce customers to other brokers and dealers.
Name: NATIONAL FINANCIAL SERVICES LLC
Business Address: 200 SEAPORT BLVD BOSTON, MA 02210
CRD #: 13041
Description: NATIONAL FINANCIAL SERVICES IS THE CLEARING FIRM FOR POPULAR SECURITIES. THEY HOLD CUSTOMER FUNDS AND SECURITIES.
Firm Operations
Industry Arrangements
This firm does have books or records maintained by a third party.
This firm does not have accounts, funds, or securities maintained by a third party.
This firm does have customer accounts, funds, or securities maintained by a third party.
This firm does not have individuals who control its management or policies through agreement.
This firm does not have individuals who wholly or partly finance the firm's business.
Control Persons/Financing
Business Address: LAS FLORES INDUSTRIAL PARK RIO GRANDE, PR 00745
Effective Date: 09/14/2004
Description: SERVICE AGREEMENT FOR RECORD MANAGEMENT, SECURE SHREDDING AND VAULT STORAGE.
Name: NATIONAL FINANCIAL SERVICES LLC
Business Address: 200 SEAPORT BLVD BOSTON, MA 02210
CRD #: 13041
Description: NATIONAL FINANCIAL SERVICES IS THE CLEARING FIRM FOR POPULAR SECURITIES. THEY HOLD CUSTOMER FUNDS AND SECURITIES.
Organization Affiliates This section provides information on control relationships the firm has with other firms in the securities, investment advisory, or banking business.
This firm is, directly or indirectly:
· in control of · controlled by · or under common control with the following partnerships, corporations, or other organizations engaged in the securities or investment advisory business.
Yes
No
No
06/02/1994
209 MUNOZ RIVERA AVE. SAN JUAN, PR 00918
POPULAR ASSET MANAGEMENT, INC. is under common control with the firm.
POPULAR SECURITIES, LLC AND POPULAR ASSET MANAGEMENT, INC ARE BOTH SUBSIDIARIES OF POPULAR, INC.
Description:
This firm is directly or indirectly, controlled by the following:
· bank holding company · national bank · state member bank of the Federal Reserve System · state non-member bank · savings bank or association · credit union · or foreign bank
Effective Date:
Business Address:
Description: POPULAR, INC. OWNS 100% OF THE STOCK OF POPULAR SECURITIES, LLC.
POPULAR, INC. is a Bank Holding Company and controls the firm.
04/01/1997
BANCO POPULAR CENTER, THIRD FLOOR SAN JUAN, PR 00918
Organization Affiliates (continued)
Disclosure Events
All firms registered to sell securities or provide investment advice are required to disclose regulatory actions, criminal or civil judicial proceedings, and certain financial matters in which the firm or one of its control affiliates has been involved. For your convenience, below is a matrix of the number and status of disclosure events involving this brokerage firm or one of its control affiliates. Further information regarding these events can be found in the subsequent pages of this report.
Final On AppealPending
Arbitration N/A 5 N/A
What you should know about reported disclosure events:
1. BrokerCheck provides details for any disclosure event that was reported in CRD. It also includes summary information regarding FINRA arbitration awards in cases where the brokerage firm was named as a respondent.
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particular criminal event. 3. Disclosure events in BrokerCheck reports come from different sources:
o Disclosure events for this brokerage firm were reported by the firm and/or regulators. When the firm and a regulator report information for the same event, both versions of the event will appear in the BrokerCheck report. The different versions will be separated by a solid line with the reporting source labeled.
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§ A "pending" event involves allegations that have not been proven or formally adjudicated. § An event that is "on appeal" involves allegations that have been adjudicated but are currently
being appealed. § A "final" event has been concluded and its resolution is not subject to change.
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or (2) an administrative panel in an action brought by a regulator that is contested by the party charged with some alleged wrongdoing.
§ A "settled" matter generally involves an agreement by the parties to resolve the matter. Please note that firms may choose to settle customer disputes or regulatory matters for business or other reasons.
§ A "resolved" matter usually involves no payment to the customer and no finding of wrongdoing on the part of the individual broker. Such matters generally involve customer disputes.
5. You may wish to contact the brokerage firm to obtain further information regarding any of the disclosure events contained in this BrokerCheck report.
Regulatory - Final
This type of disclosure event involves (1) a final, formal proceeding initiated by a regulatory authority (e.g., a state securities agency, self-regulatory organization, federal regulator such as the U.S. Securities and Exchange Commission, foreign financial regulatory body) for a violation of investment-related rules or regulations; or (2) a revocation or suspension of the authority of a brokerage firm or its control affiliate to act as an attorney, accountant or federal contractor.
Disclosure 1 of 6
Reporting Source: Regulator
Allegations: SEC ADMIN RELEASE IA 5173, MARCH 11, 2019: THE SECURITIES AND EXCHANGE COMMISSION DEEMS IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE INSTITUTED AGAINST POPULAR SECURITIES, LLC ("RESPONDENT"). ON THE BASIS OF THIS ORDER AND RESPONDENT'S OFFER, THE COMMISSION FINDS THAT THESE PROCEEDINGS ARISE OUT OF BREACHES OF FIDUCIARY DUTY AND INADEQUATE DISCLOSURES BY THE RESPONDENT IN CONNECTION WITH ITS MUTUAL FUND SHARE CLASS SELECTION PRACTICES AND THE FEES IT RECEIVED. AT TIMES DURING THE RELEVANT PERIOD, RESPONDENT PURCHASED, RECOMMENDED, OR HELD FOR ADVISORY CLIENTS MUTUAL FUND SHARE CLASSES THAT CHARGED 12B-1 FEES INSTEAD OF LOWER-COST SHARE CLASSES OF THE SAME FUNDS FOR WHICH THE CLIENTS WERE ELIGIBLE. RESPONDENT RECEIVED 12B-1 FEES IN CONNECTION WITH THESE INVESTMENTS. RESPONDENT FAILED TO DISCLOSE IN ITS FORM ADV OR OTHERWISE THE CONFLICTS OF INTEREST RELATED TO (A) ITS RECEIPT OF 12B-1 FEES, AND/OR (B) ITS SELECTION OF MUTUAL FUND SHARE CLASSES THAT PAY SUCH FEES. DURING THE RELEVANT PERIOD, RESPONDENT RECEIVED 12B-1 FEES FOR ADVISING CLIENTS TO INVEST IN OR HOLD SUCH MUTUAL FUND SHARE CLASSES. AS A RESULT OF THE CONDUCT, RESPONDENT WILLFULLY VIOLATED SECTIONS 206(2) AND 207 OF THE ADVISERS ACT.
Current Status: Final
Principal Sanction(s)/Relief Sought:
Other Sanction(s)/Relief Sought:
Other Product Type(s):
Allegations: SEC ADMIN RELEASE IA 5173, MARCH 11, 2019: THE SECURITIES AND EXCHANGE COMMISSION DEEMS IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE INSTITUTED AGAINST POPULAR SECURITIES, LLC ("RESPONDENT"). ON THE BASIS OF THIS ORDER AND RESPONDENT'S OFFER, THE COMMISSION FINDS THAT THESE PROCEEDINGS ARISE OUT OF BREACHES OF FIDUCIARY DUTY AND INADEQUATE DISCLOSURES BY THE RESPONDENT IN CONNECTION WITH ITS MUTUAL FUND SHARE CLASS SELECTION PRACTICES AND THE FEES IT RECEIVED. AT TIMES DURING THE RELEVANT PERIOD, RESPONDENT PURCHASED, RECOMMENDED, OR HELD FOR ADVISORY CLIENTS MUTUAL FUND SHARE CLASSES THAT CHARGED 12B-1 FEES INSTEAD OF LOWER-COST SHARE CLASSES OF THE SAME FUNDS FOR WHICH THE CLIENTS WERE ELIGIBLE. RESPONDENT RECEIVED 12B-1 FEES IN CONNECTION WITH THESE INVESTMENTS. RESPONDENT FAILED TO DISCLOSE IN ITS FORM ADV OR OTHERWISE THE CONFLICTS OF INTEREST RELATED TO (A) ITS RECEIPT OF 12B-1 FEES, AND/OR (B) ITS SELECTION OF MUTUAL FUND SHARE CLASSES THAT PAY SUCH FEES. DURING THE RELEVANT PERIOD, RESPONDENT RECEIVED 12B-1 FEES FOR ADVISING CLIENTS TO INVEST IN OR HOLD SUCH MUTUAL FUND SHARE CLASSES. AS A RESULT OF THE CONDUCT, RESPONDENT WILLFULLY VIOLATED SECTIONS 206(2) AND 207 OF THE ADVISERS ACT.
Resolution Date: 03/11/2019
Resolution:
Does the order constitute a final order based on violations of any laws or regulations that prohibit fraudulent, manipulative, or deceptive conduct?
Yes
Order
Other Sanctions Ordered: UNDERTAKINGS AND PREJUDGMENT INTEREST
Sanction Details: THE RESPONDENT SHALL CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTIONS 206(2) AND 207 OF THE ADVISERS ACT. RESPONDENT IS CENSURED, SHALL PAY DISGORGEMENT OF $490,020 AND PREJUDGMENT INTEREST OF $54,557, AND SHALL COMPLY WITH THE UNDERTAKINGS ENUMERATED IN THE OFFER OF SETTLEMENT.
Regulator Statement RESPONDENT HAS SUBMITTED AN OFFER OF SETTLEMENT WHICH THE COMMISSION HAS DETERMINED TO ACCEPT. IN VIEW OF THE FOREGOING, THE COMMISSION DEEMS IT APPROPRIATE IN THE PUBLIC INTEREST TO IMPOSE THE SANCTIONS AGREED TO IN THE RESPONDENT'S OFFER. RESPONDENT SELF-REPORTED TO THE COMMISSION THE VIOLATIONS DISCUSSED IN THIS ORDER PURSUANT TO THE DIVISION OF ENFORCEMENT'S SHARE CLASS SELECTION DISCLOSURE INITIATIVE ("SCSD INITIATIVE"). ACCORDINGLY, THIS ORDER AND RESPONDENT'S OFFER ARE BASED ON THE INFORMATION SELF-REPORTED BY RESPONDENT.
Sanctions Ordered: Censure Disgorgement/Restitution Cease and Desist/Injunction
i Reporting Source: Firm
Cease and Desist
Date Initiated: 03/11/2019
Principal Product Type: Mutual Fund(s)
Allegations: POPULAR ADVISED CLIENTS TO PURCHASE OR HOLD MUTUAL FUND SHARE CLASSES THAT CHARGED 12B-1 FEES WHEN LOWER-COST SHARE CLASSES OF THOSE SAME FUNDS WERE AVAILABLE. AS A RESULT, POPULAR SECURITIES RECEIVED 12B-1 FEES THAT IT WOULD NOT HAVE COLLECTED HAD THOSE CLIENTS BEEN INVESTED IN THE AVAILABLE LOWER-COST SHARE CLASSES. POPULAR FAILED TO DISCLOSE IN ITS FORM ADV OR OTHERWISE THE CONFLICTS OF INTEREST RELATED TO (A) ITS RECEIPT OF 12B-1 FEES, AND/OR (B) ITS SELECTION OF MUTUAL FUND SHARE CLASSES THAT PAY SUCH FEES.
Resolution:
Other Sanctions Ordered: UNDERTAKING TO (1) REVIEW AND CORRECT DISCLOSURE DOCUMENTS CONCERNING MUTUAL FUND SHARE CLASS SELECTION, (2) EVALUATE WHETHER EXISTING CLIENTS SHOULD BE MOVED TO A LOWER-COST SHARE CLASS AND MOVE CLIENTS AS NECESSARY, (3) EVALUATE AND UPDATE (IF NECESSARY) POLICIES AND PROCEDURES RELATING TO DISCLOSURES REGARDING MUTUAL FUND SHARE CLASS SELECTION, (4) NOTIFY AFFECTED INVESTORS OF THE SETTLEMENT TERMS OF THIS ORDER, AND (4) CERTIFY, IN WRITING, COMPLIANCE WITH THE UNDERTAKINGS.
Sanction Details: DISGORGEMENT: POPULAR SECURITIES SHALL PAY A TOTAL OF $544,577 TO FORMER AND CURRENT CLIENTS WHO, DURING THE RELEVANT PERIOD OF INADEQUATE DISCLOSURE, PURCHASED OR HELD 12B-1 FEE PAYING SHARE CLASS MUTUAL FUNDS WHEN A LOWER-COST SHARE CLASS OF THE SAME FUND WAS AVAILABLE TO THE CLIENT. THE TOTAL IS COMPRISED OF DISGORGEMENT OF $490,020 AND PREJUDGMENT INTEREST OF $54,557.
Firm Statement POPULAR SECURITIES PARTICIPATED IN THE SEC'S SHARE CLASS SELECTION DISCLOSURE INITIATIVE, PURSUANT TO WHICH IT VOLUNTARILY SELF-REPORTED A FAILURE DURING THE PERIOD OF JANUARY 1, 2014 TO FEBRUARY 28, 2017 TO DISCLOSE A CONFLICT OF INTEREST RELATED TO THE SALE OF HIGHER-COST MUTUAL FUND SHARE CLASSES WHEN A LOWER-COST SHARE CLASS WAS AVAILABLE. POPULAR PURCHASED, RECOMMENDED, OR HELD FOR ADVISORY CLIENTS MUTUAL FUND SHARE CLASSES THAT CHARGED HIGHER 12B-1 FEES INSTEAD OF LOWER-COST SHARE CLASSES OF THE SAME FUNDS FOR WHICH THE CLIENTS WERE ELIGIBLE. POPULAR RECEIVED 12B-1 FEES IN CONNECTION WITH THESE INVESTMENTS. WITHOUT ADMITTING OR DENYING THE FINDINGS, POPULAR AGREED TO A SETTLEMENT THAT FOUND THIS CONDUCT TO HAVE BEEN IN VIOLATION OF SECTION 206(2) OF THE ADVISERS ACT. THE SETTLEMENT ALSO INCLUDES THE SANCTIONS AND UNDERTAKINGS DETAILED ABOVE. THE SEC AGREED NOT TO IMPOSE PENALTIES AGAINST POPULAR."
Sanctions Ordered: Censure Disgorgement/Restitution Cease and Desist/Injunction
Decision & Order of Offer of Settlement
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED TO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT FAILED TO ESTABLISH, MAINTAIN, AND ENFORCE A SUPERVISORY SYSTEM AND PROCEDURES REASONABLY DESIGNED TO IDENTIFY AND REVIEW CONCENTRATED SECURITIES PURCHASES, INCLUDING PUERTO RICO MUNICIPAL BONDS AND PUERTO RICO CLOSED-END FUNDS. THE FINDINGS STATED THAT WHEN THE PUERTO RICO GENERAL OBLIGATION BOND RATING WAS DOWNGRADED, THE FIRM'S CUSTOMERS CONTINUED PURCHASING CONCENTRATED POSITIONS OF PUERTO RICO SECURITIES. THE FIRM'S WRITTEN SUPERVISORY PROCEDURES DID NOT OUTLINE THE STEPS THAT THE FIRM SHOULD HAVE TAKEN TO REVIEW ITS CUSTOMERS' SECURITIES PURCHASES FOR CONCENTRATION, AND APART FROM A PROCEDURE THAT REQUIRED QUARTERLY REVIEWS OF "ELDERLY" CUSTOMER ACCOUNTS FOR CONCENTRATION OF ONE PRODUCT IN THE CLIENT'S ACCOUNT, THE FIRM DID NOT ESTABLISH, MAINTAIN, OR ENFORCE ANY SYSTEMS OR PROCEDURES THAT REQUIRED SUPERVISORS TO REVIEW FOR CONCENTRATED PURCHASES (I.E., CONCENTRATION IN A SINGLE SECURITY, SUBSTANTIALLY SIMILAR SECURITIES, OR SECURITIES OF A SINGLE GEOGRAPHIC REGION), INCLUDING PUERTO RICO SECURITIES, OR DOCUMENT THEIR REVIEWS.
Resolution:
No
Acceptance, Waiver & Consent(AWC)
Other Sanctions Ordered:
Sanction Details: THE FIRM WAS CENSURED AND FINED $125,000. FINE PAID IN FULL ON DECEMBER 17, 2014.
No
Allegations: FINRA'S EXAMINATION FOCUSED ON (1) THE ADEQUACY OF THE FIRM'S SUPERVISORY SYSTEM AND WRITTEN SUPERVISORY PROCEDURES RELATING TO CONCENTRATION OF PUERTO RICO SECURITIES IN CUSTOMER ACCOUNTS, AND (2) THE SUITABILITY OF RECOMMENDATIONS THE FIRM MADE TO ITS CUSTOMERS RELATING TO PUERTO RICO SECURITIES.
Sanction Details: A FINE OF $125,000.00 WAS PAID ON DECEMBER 17, 2014.
Sanctions Ordered: Censure Monetary/Fine $125,000.00
Sanction Details: A FINE OF $125,000.00 WAS PAID ON DECEMBER 17, 2014.
Firm Statement ON DECEMBER 11, 2014, THE FIRM EXECUTED A LETTER OF ACCEPTANCE, WAIVER AND CONSENT ("AWC") PURSUANT TO WHICH FINRA AGREED TO ACCEPT A SETTLEMENT TO CONCLUDE ITS EXAMINATION OF THE FIRM. UNDER THE TERMS OF THE AWC, THE FIRM (1) ACCEPTED THAT THE FIRM'S WRITTEN SUPERVISORY PROCEDURES ("WSPS") FOR THE PERIOD BEGINNING ON JULY 1, 2011 AND ENDING ON JUNE 30, 2013 DID NOT OUTLINE THE STEPS THAT THE FIRM SHOULD HAVE TAKEN TO REVIEW ITS CUSTOMERS' SECURITIES PURCHASES IN PUERTO RICO SECURITIES FOR CONCENTRATION, AND THAT, APART FROM A PROCEDURE THAT REQUIRED QUARTERLY REVIEWS OF "ELDERLY" CUSTOMER ACCOUNTS FOR CONCENTRATION OF ONE PRODUCT IN CLIENT'S ACCOUNT, THE FIRM DID NOT ESTABLISH, MAINTAIN, OR ENFORCE ANY SYSTEMS OR PROCEDURES THAT REQUIRED SUPERVISORS TO REVIEW FOR CONCENTRATED PURCHASES IN PUERTO RICO SECURITIES OR DOCUMENT SUCH REVIEWS; AND (2) AGREED TO A CENSURE AND A FINE OF $125,000. THE FIRM HAS ACCEPTED THE ABOVE REFERENCED FINDING WITHOUT ADMITTING OR DENYING THE SAME.
Disclosure 3 of 6
Allegations: MSRB RULE A-13(D) - RESPONDENT FAILED TO TIMELY PAY MUNICIPAL SECURITIES TRANSACTION FEES TO THE MUNICIPAL SECURITIES RULEMAKING BOARD (MSRB) AND FAILED TO TIMELY PAY A MUNICIPAL SECURITIES UNDERWRITING FEE TO THE MSRB.
Resolution:
No
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, POPULAR SECURITIES, INC., CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS, THEREFORE, THE FIRM IS CENSURED AND FINED $5,000.
No
Allegations: MSRB RULE A-13(D)- RESPONDENT FIRM FAILED TO TIMELY PAY MUNICIPAL SECURITIES TRANSACTION FEES AND MUNICIPAL SECURITIES UNDERWRITING FEES TO THE MSRB.
Sanction Details: ON AUGUST 30, 2007, POPULAR SECURITIES, INC. SUBMITTED A LETTER OF ACCEPTANCE, WAIVER AND CONSENT TO THE FINANCIAL INDUSTRY REGULATORY AUTHORITY UNDER THE TERMS OF WHICH IT HAS AGREED TO ACCEPT A CENSURE AND PAY A FINE OF $5,000.
ON AUGUST 30, 2007, POPULAR SECURITIES, INC. SUBMITTED A LETTER OF ACCEPTANCE, WAIVER AND CONSENT TO THE FINANCIAL INDUSTRY REGULATORY AUTHORITY UNDER THE TERMS OF WHICH IT HAS AGREED TO ACCEPT A CENSURE AND PAY A FINE OF $5,000.
Firm Statement ON AUGUST 30, 2007, POPULAR SECURITIES, INC. SUBMITTED A LETTER OF ACCEPTANCE, WAIVER AND CONSENT TO THE FINANCIAL INDUSTRY REGULATORY AUTHORITY UNDER THE TERMS OF WHICH IT HAS AGREED TO ACCEPT A CENSURE AND PAY A FINE IN CONNECTION WITH THE RESOLUTION OF CERTAIN FINRA ALLEGATION OR FINDINGS. IN THE AWC, POPULAR SECURITIES CONSENTED, WITHOUT ADMITTING OR DENYING FINRA'S ALLEGATIONS, TO THE ENTRY OF FINDINGS RELATED TO MUNICIPAL SECURITIES RULEMAKING BOARD RULE A-13(D)AND THE LATE PAYMENT OF CERTAIN TRANSACTION AND UNDERWRITING FEES TO THE MSRB. IT IS IMPORTANT TO NOTE THAT CLIENTS WERE NOT IMPACTED BY THESE REPORTING ISSUES.
Disclosure 4 of 6
Allegations: MSRB RULE G-14 AND G-27- RESPONDENT FIRM FAILED TO TIMELY REPORT ITS MUNICIPAL SECURITIES CUSTOMER TRANSACTIONS TO THE MSRB. THE FIRM ALSO FAILED TO TIMELY REPORT ITS MUNICIPAL SECURITIES INTER-DEALER TRANSACTIONS TO THE MSRB. THE FIRM FAILED TO MONITOR ITS TRADE REPORTING TO ENSURE COMPLIANCE WITH MSRB RULE G-14.
Resolution:
No
Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, RESPONDENT FIRM CONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS; THEREFORE, THE FIRM IS CENSURED AND FINED $40,000
No
Allegations: MSRB RULES G-14 AND G-27: THE FIRM FAILED TO TIMELY REPORT ITS MUNICIPAL SECURITIES CUSTOMER TRANSACTIONS TO THE MSRB. THE FIRM ALSO FAILED TO TIMELY REPORT ITS MUNICIPAL SECURITIES INTER- DEALER TRANSACTIONS TO THE MSRB. THE FIRM FAILED TO MONITOR ITS TRADE REPORTING TO ENSURE COMPLIANCE WITH MSRB RULE G-14.
Sanction Details: ON MAY 31, 2005, POPULAR SECURITIES, INC. ("POPULAR SECURITIES") SUBMITTED A LETTER OF ACCEPTANCE, WAIVER AND CONSENT ("AWC") TO THE NASD WITH THE TERMS UNDER WHICH IT HAS AGREED TO ACCEPT A CENSURE AND PAY A FINE IN CONNECTION WITH THE RESOLUTION OF CERTAIN NASD ALLEGATIONS OR FINDINGS. IN THE AWC, POPULAR SECURITIES CONSENTED, WITHOUT ADMITTING OR DENYING THE NASD'S ALLEGATIONS, TO THE ENTRY OF FINDINGS RELATED TO MSRB RULES G-14 AND G-27. IT IS IMPORTANT TO NOTE THAT THE ALLEGATIONS PRESENTED WERE OPERATIONAL IN NATURE AND THAT NO CLIENTS WERE AFFECTED BY THESE REPORTING ISSUE.
Sanction Details: ON MAY 31, 2005, POPULAR SECURITIES, INC. ("POPULAR SECURITIES") SUBMITTED A LETTER OF ACCEPTANCE, WAIVER AND CONSENT ("AWC") TO THE NASD WITH THE TERMS UNDER WHICH IT HAS AGREED TO ACCEPT A CENSURE AND PAY A FINE IN CONNECTION WITH THE RESOLUTION OF CERTAIN NASD ALLEGATIONS OR FINDINGS. IN THE AWC, POPULAR SECURITIES CONSENTED, WITHOUT ADMITTING OR DENYING THE NASD'S ALLEGATIONS, TO THE ENTRY OF FINDINGS RELATED TO MSRB RULES G-14 AND G-27. IT IS IMPORTANT TO NOTE THAT THE ALLEGATIONS PRESENTED WERE OPERATIONAL IN NATURE AND THAT NO CLIENTS WERE AFFECTED BY THESE REPORTING ISSUE.
Firm Statement RULE G-14 WAS SIGNIFICANTLY AMENDED IN JANUARY 2005 TO REQUIRE A FASTER REPORTING OF MUNICIPAL SECURITIES TRANSACTIONS TO THE MSRB. CORRECTIVE STEPS AND CONTROLS HAVE BEEN ESTABLISHED IN ORDER TO ENSURE COMPLIANCE WITH THESE RULES.
Disclosure 5 of 6
Sanction Details:
Regulator Statement ON FEBRUARY 11, 1985 , FIRST BOSTON (PUERTO RICO), INC. AGREED TO ACCEPT AN ADMINISTRATIVE FINE OF $100.00 IMPOSED BY THE COMMONWEALTH OF PUERTO RICO FOR FAILURE TO RENEW ITS BROKER DEALER REGISTRATION ON A TIMELY BASIS.
Sanctions Ordered: Monetary/Fine $3,000.00
Settled
ON FEBRUARY 11, 1985 , FIRST BOSTON (PUERTO RICO), INC. AGREED TO ACCEPT AN ADMINISTRATIVE FINE OF $100.00 IMPOSED BY THE COMMONWEALTH OF PUERTO RICO FOR FAILURE TO RENEW ITS BROKER DEALER REGISTRATION ON A TIMELY BASIS.
Allegations: FIRST BOSTON (PUERTO RICO), INC. WAS FINE $100.00 BY THE COMMONWEALTH OF PUERTO RICO FOR FAILING TO RENEW ITS BROKER DEALER REGISTRATION ON A TIMELY BASIS
Sanction Details: 10/31/1990, $3000.00 FINE BY NATIONAL ASSOCIATION OF SECURITIES DEALERS, PAID BY APPLICANT
Firm Statement ON FEBRUARY 11, 1985, FIRST BOSTON (PUERTO RICO), INC. AGREED TO ACCEPT AN ADMINISTRATIVE FINE OF $100.00 IMPOSED BY TRE COMMONWEALTH OF PUERTO RICO FOR FAILURE TO RENEW ITS BROKER DEALER REGISTRATION ON A TIMELY BASIS.
Sanctions Ordered: Monetary/Fine $3,000.00
Sanction Details:
Regulator Statement ON FEBRUARY 11, 1985 , FIRST BOSTON (PUERTO RICO), INC. AGREED TO ACCEPT AN ADMINISTRATIVE FINE OF $100.00 IMPOSED BY THE COMMONWEALTH OF PUERTO RICO FOR FAILURE TO RENEW ITS BROKER DEALER REGISTRATION ON A TIMELY BASIS.
Sanctions Ordered: Monetary/Fine $100.00
Allegations: FIRST BOSTON (PUERTO RICO, INC. WAS FINE $100.00 BY THE COMMONWEALTH OF PUERTO RICO FOR FAILING TO RENEW ITS BROKER DEALER REGISTRATION ON A TIMELY BASIS.
Sanction Details: $100.00 FINE, 02/11/1985, PAID BY APPLICANT
Firm Statement ON FEBRUARY 11, 1985, FIRST BOSTON (PUERTO RICO), INC. AGREED TO ACCEPT AN ADMINISTRATIVE FINE OF $100.00 IMPOSED BY THE COMMONWEALTH OF PUERTO RICO FOR FAILURE TO RENEW ITS BROKER DEALER REGISTRATION ON A TIMELY BASIS.
Sanctions Ordered: Monetary/Fine $100.00
Decision
Arbitration Award - Award / Judgment
Brokerage firms are not required to report arbitration claims filed against them by customers; however, BrokerCheck provides summary information regarding FINRA arbitration awards involving securities and commodities disputes between public customers and registered securities firms in this section of the report. The full text of arbitration awards issued by FINRA is available at www.finra.org/awardsonline.
Disclosure 1 of 5
Disposition:
FINRA
09/10/2010
10-03760
STRUCTURED PRODUCTS
03/09/2012
$120,300.00
There may be a non-monetary award associated with this arbitration. Please select the Case Number above to view more detailed information.
Disclosure 2 of 5
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY- MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
Disposition:
11-02032
08/10/2012
$36,977.25
Disclosure 3 of 5
Disposition:
FINRA
09/12/2014
14-02730
$570,024.78
07/19/2016
$312,290.78
Disclosure 4 of 5
Allegations: ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-FRAUD; ACCOUNT ACTIVITY-MANIPULATION; ACCOUNT ACTIVITY- MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
Disposition:
FINRA
10/02/2015
15-02330
GOVERNMENT SECURITIES; MUNICIPAL BOND FUNDS; MUNICIPAL BONDS
$2,411,162.02
03/28/2018
$250,000.00
Disclosure 5 of 5
Disposition:
FINRA
03/07/2016
16-00629
MUNICIPAL BOND FUNDS; MUNICIPAL BONDS
$5,000,000.00
10/18/2018
$173,537.00
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