Regulators Probe Auction-Rate Securities
As the number of investors who claim they were misled into buying auction-rate securities intensifies, so, too, does the examination of the industry by regulators.
According to the Wall Street Journal, the Securities and Exchange Commission and the Financial Industry Regulatory Authority are working together as they examine claims that broker-dealers misled investors into believing the instruments were as safe as cash.
Recently, Finra sent a survey to financial companies asking them to provide a breakdown of the total auction-rate securities holding by customer type, how the securities are classified on customer statements, and how the securities were marketed.
The survey comes after hundreds of auctions failed, leaving investors holding frozen assets.
If you hold auction-rate securities, contact Carey & Danis.
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