The Financial Industry Regulatory Authority has issued guidance warning broker-dealers to be fair when allocating partial redemptions of auction-rate securities among customers who hold them.

"When allocating redemptions in the context of a partial redemption of ARS, firms must follow procedures that are reasonably designed to treat customers fairly and impartially, and that put their customers' interests ahead of their own," FINRA said in a two-and-a-half-page notice it released Wednesday.

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