WASHINGTON — The Financial Industry Regulatory Authority fined SunTrust Robinson Humphrey Inc. and SunTrust Investment Services Inc. a total of $5 million for disclosure and other failures related to underwriting and selling auction-rate securities.

Both firms are Atlanta-based broker-dealer subsidiaries of SunTrust Banks Inc. SunTrust RH was fined $4.6 million for failing to disclose to customers the increased risk that auctions could fail, for sharing material non-public information, and for misleading marketing materials that claimed ARS were liquid and safe.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.