Customer alleges that respondent failed to advise claimant of the risks of their concentrated investment recommendations in Puerto Rico municipal bonds.

$150,000.00

$14,000.00

This client bought the bonds on an unsolicited basis. I left HSBC in 2012, 3 years before this client filed. I could not reach out to this client as HSBC had me on a garden leave and non-compete. I disagree with this compliant as I was not to keep client informed.

HSBC SECURITIES (USA) INC.

Voluntary Resignation

THROUGH ITS BANK AFFILIATE, HSBC BANK USA, N.A., HSBC SECURITIES (USA), INC. WAS ADVISED OF A REVIEW BEING CONDUCTED BY ITS AFFILIATE, AS THE BANK MATTER INVOLVED THE RR'S MOTHERS BANK ACCOUNT. HSBC BANK WAS REVIEWING THE AUTHENTICITY OF A SIGNATURE ON A BANK CHECK. PRIOR TO THE CONCLUSION OF THE INTERNAL REVIEW,THE RR RESIGNED. A REVIEW CONDUCTED BY HSBC SECURITIES INDICATED THAT THE RR USED PRE-SIGNED IRA DISTRIBUTION FORMS FOR HIS MOTHER'S ACCOUNT. THE REVIEWS CONDUCTED BY HSBC BANK AND HSBC SECURITIES DID NOT RESULT IN ANY FINDINGS OF FRAUD OR MISAPPROPRIATION OF FUNDS. THERE HAVE BEEN NO ISSUES NOTED REGARDING ANY OF THE TRANSACTIONS IN THE RESPECTIVE ACCOUNTS, NOR WERE THERE ANY CUSTOMER COMPLAINTS ASSOCIATED WITH THE CUSTOMER INVOLVED. THE INVESTIGATION IS CONSIDERED CLOSED.

CUSTOMER CLAIMS WITH NO REGARD FOR HIS INVESTMENT EXPERIENCE, RISK TOLERANCE, OR RETIREMENT NEEDS THE FINANCIAL ADVISOR PLACED A DISPROPORTIONATE PERCENTAGE OF HIS FUNDS IN THE STOCK MARKET AND HIGH YIELD BONDS.

$311,624.00

$128,671.00

** PLEASE REFUND LATE FEES INFORMATION ENTERED IN ERROR IN SECTION 12-16.

COMPLAINT MADE ON BEHALF OF [CUSTOMER] ALLEGES FINANCIAL ADVISOR OPENED THE ACCOUNT WITH THE AGREEMENT THAT HE WOULD PAY $10 PER TRADE.

$37,103.20

$17,780.08

CUSTOMERS CLAIM REGISTERED REPRESENTATIVE DID NOT HAVE THEIR SPECIFIC AUTHORIZATION TO PURCHASE ADDITIONAL AUCTION RATE SECURITIES, ALTHOUGH THEY ACKNOWLEDGE HAVING HAD CONVERSATIONS IN THIS REGARD. THIS CUSTOMER COMPLAINT INVOLVES ONE OR MORE AUCTION RATE SECURITIES WITH A NOTIONAL VALUE OF $200,000 WHICH HAVE BEEN THE SUBJECT OF A FAILED AUCTION.

$200,000.00

ON 5/8/08, HSBC SECURITIES (USA) INC. AGREED TO VOLUNTARILY REPURCHASE THE ARS SECURITIES AT ISSUE FROM THE CUSTOMER AT PAR VALUE IN ORDER TO PROVIDE LIQUIDITY UNDER UNPRECEDENTED MARKET DEVELOPMENTS TO THE EXTENT THAT A CUSTOMER'S ARS POSITION(S) COULD NOT BE SOLD AND WAS NOT REDEEMED BY THE ISSUER. THE NAMED REPRESENTATIVE WAS NOT A PARTY TO, AND DID NOT AGREE TO OR PARTICIPATE IN, THE REPURCHASE AGREEMENT BETWEEN THE FIRM AND THE CUSTOMER; THE NAMED REPRESENTATIVE DID NOT MAKE ANY PAYMENTS TO THE CUSTOMER; AND THE NAMED REPRESENTATIVE WAS NOT ASKED TO AND DID NOT CONTRIBUTE TO THE REPURCHASE AMOUNT. THIS MATTER IS BEING REPORTED AS A SETTLEMENT PURSUANT TO THE REQUIREMENTS OF FINRA REGULATORY NOTICE 09-12.

CUSTOMERS CLAIM THEY WERE TOLD THE ARS COULD BE EASILY LIQUIDATED. AS A RESULT OF THE FAILED AUCTIONS, CUSTOMERS CLAIM THE ARS ARE NOT MEETING THEIR NEEDS. THIS CUSTOMER COMPLAINT INVOLVES ONE OR MORE AUCTION RATE SECURITIES WITH A NOTIONAL VALUE OF $9,050,000.00 WHICH HAVE BEEN THE SUBJECT OF A FAILED AUCTION.

$3,550,000.00

ON 5/2/08, HSBC SECURITIES (USA) INC. AGREED TO VOLUNTARILY REPURCHASE THE ARS SECURITIES AT ISSUE FROM THE CUSTOMER AT PAR VALUE IN ORDER TO PROVIDE LIQUIDITY UNDER UNPRECEDENTED MARKET DEVELOPMENTS TO THE EXTENT THAT A CUSTOMER'S ARS POSITION(S) COULD NOT BE SOLD AND WAS NOT REDEEMED BY THE ISSUER. THE NAMED REPRESENTATIVE WAS NOT A PARTY TO, AND DID NOT AGREE TO OR PARTICIPATE IN, THE REPURCHASE AGREEMENT BETWEEN THE FIRM AND THE CUSTOMER; THE NAMED REPRESENTATIVE DID NOT MAKE ANY PAYMENTS TO THE CUSTOMER; AND THE NAMED REPRESENTATIVE WAS NOT ASKED TO AND DID NOT CONTRIBUTE TO THE REPURCHASE AMOUNT. THIS MATTER IS BEING REPORTED AS A SETTLEMENT PURSUANT TO THE REQUIREMENTS OF FINRA REGULATORY NOTICE 09-12.