State Regulators in U.S. Collaborate on Structured Notes Probe
A group of about 10 states is examining whether structured notes, securities that package debt with derivatives that are typically offered to individual investors, were improperly sold.
States including Florida and Texas are seeking to determine if brokers sold the debt instruments without adequately disclosing the risks, Franklin L. Widmann, head of the structured products working group for the North American Securities Administrators Association, said today in a telephone interview.
Widmann, who’s also director of securities for Florida’s Office of Financial Regulation, declined to comment further because the investigation is ongoing.
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