Following a series of law suits by investors against brokerages, the Financial Industry Regulatory Authority (Finra) and the Securities and Exchange Commission are looking into possible irregularities in auction rate securities (ARS).
Finra, which recently sent securities firms a survey on ARS, has reportedly begun a sweep investigation, with help from the SEC. John Heine, spokesperson for the commission, said that "while we cannot discuss specific matters ... we are looking into representations made to investors when they purchased auction rate securities."
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