You will often see in the news an article referring to the losses suffered by customers who have invested in certain products sold by savings banks (ie Bankia), but what is not known is that there were other products that also made a hole in the finances of near 129,000 investors.
These are ‘Valores Santander’, a complicated financial vehicle in bonds for the first five years that were transformed into shares and that the entity issued in October 2007 to capture 7,000 million euros and thus cover the purchase of the Dutch bank ABN Amro.
‘Valores Santander’ are savings products that were due to convert into Santander shares in October 2012. The bonds offered a high 7.5% interest rate in the first year of issue, which then fell to 2.75% above the benchmark interest rate until October 2012. Santander shares have fallen sharply since 2007 to a level of around €3.99 each, meaning that savers will lose from their original investment.
‘Valores Santander’ are classified as “complex” whose characteristics are not sufficiently widespread among investors and are recommended for qualified investors, as they may involve a high risk. As an example, a person who invested €40,000 in September 2007, has a value today of €18,105.86.
There are a large number of investors, small savers (such as pensioners), without any financial knowledge, who lost more than 55% of their investment. (According to art. 4.1.12 of Directive 2004/39 / EC and Art. 78.bis.4 of Law 24/1988), these investors are “retail clients” and therefore deserve the highest degree of protection as consumers.
The Directive 85/611/EEC, as amended by Directives 2001/107/EC and 2001/108/EC of the European Parliament and the Council, impose on Investment Institutions the obligation to prepare a “prospectus” as an essential tool to ensure transparency and investor protection in the field of collective investment. The information contained in this “prospectus” is only written in Spanish, not translated into English for British customers and it is insufficient. Banco Santander has been sanctioned with a fine of €6,900,000.
Legal View represents a group of investors taking legal actions against Banco Santander, who have suffered significant losses with the ‘Valores Santander’. If you are among the many affected by the acquisition of these values and you want to recuperate your funds, please contact Legal View on 968 199 237