Banco Popular launched convertible bonds worth €700 million in 2009. On maturing, these bonds could be exchanged for shares in the bank. However, thousands of clients lost up to 80% of their investments. These products were commercialised without enough information and consumers were unaware that they could lose money with these products.
The Spanish securities regulator CNMV imposed a €1 million fine on the bank for commercialising these bonds. The Supreme Court explained that the consumer would have had to be an expert in the stock market to understand the product and that the bank did not give the customer enough information in the documentation.