Nuveen Agrees To $3M FINRA Fine Over Illiquid Bonds

Law360, New York (May 23, 2011, 2:17 PM EDT) -- The broker-dealer unit of Nuveen Investments Inc. said Monday that it would pay a $3 million fine for creating misleading marketing materials used in sales of auction rate preferred securities, the market for which collapsed more than three years ago.

Chicago-based Nuveen Investments LLC agreed to the fine and a censure without admitting liability, the company said, adding that the agreement would put an end to a two-year-old Financial Industry Regulatory Authority probe.

The Nuveen funds have redeemed $14.2 billion of the $15.4 billion of the...
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