Investigators from the Financial Industry Regulatory Authority (FINRA) will reportedly begin conducting on-site examinations at nearly 40 brokerages beginning Monday to determine whether they were aware of the problems in the auction-rate market and adequately warned customers about the risks. According to the LA Times, citing a person familiar with the issue, FINRA’s examinations will focus heavily on brokerages that sold but did not create the securities, which represents a major widening of the auction-rate probe that until now has centered primarily on investment banks that underwrote the debt.
‘Enforcement 40’ for 2020
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