MIAMI - The Financial Industry Regulatory Authority is monitoring broker-dealers' retail sales of municipal and corporate auction-rate securities, as well as collateralized mortgage obligations, to ensure compliance with suitability and other rules in light of the turmoil in the ARS markets, Malcolm Northam, FINRA's director of fixed-income securities regulation, said Friday.

Speaking at a Securities Industry and Financial Markets Association regional capital markets conference here, Northam said that such an examination "should not come as any surprise" in light of market conditions.

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