The Financial Industry Regulatory Authority yesterday announced that it has launched three fact-finding sweeps tied to the municipal securities market, including an enforcement sweep to examine firms' potential conflicts, disclosure practices, and marketing of derivatives to small and unsophisticated municipalities.

In addition to announcing the sweeps, which were launched in recent weeks, FINRA issued a regulatory notice to securities firms and brokers reminding them of their ongoing obligation to disclose material information to customers - including changes to the financial condition of the issuing municipality - as well as their obligations regarding suitability.

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