Regulatory Notice 08-21

FINRA Issues Guidance to Broker-Dealers on Partial Redemptions of Auction Rate Securities

Executive Summary

In response to current market conditions, some issuers are offering partial redemptions of auction rate securities. This Notice reminds firms that when allocating partial redemptions of auction rate securities among their customers, they must adopt procedures that are reasonably designed to treat customers fairly and impartially, and must put their customers’ interests ahead of their own.

 

Questions regarding this Notice may be directed to Kathryn Mahoney, Director, Office of Emerging Regulatory Issues, at (212) 858-4101; or Ivette Lopez, Vice President, Office of Investor Education, at (202) 728-8928.