Auction Rate Securities (ARS) were marketed to investors as "money market or cash equivalents".

In February 2008 the market for auction rate securities collapsed causing liquidity problems and loss in value of these securities.

The Tennessee Securities Division is well aware of the lawsuits and regulatory settlements that have been reported in the national and local media regarding the sale of auction rate securities to consumers (including consumers in Tennessee) by a vast array of national and regional broker-dealers and their agents. As a member of the North American Securities Administrators Association (NASAA), the Tennessee Securities Division is involved in all of the investigations and settlements being regularly announced by the states that volunteered their regulatory resources to lead the comprehensive and national inquiries. Please visit www.nasaa.org and http://tn.gov/commerce/securities to view general information on auction rate securities and get updated information on the investigations and settlements.

For additional information on ARS, click on the ARS Primer.

If you want to file a complaint click on ARS Complaint.

If you want to file the complaint, print it out, fill it in and mail it to the address shown on our home page.