WASHINGTON - In the first legal action of its kind, New Hampshire's top securities regulator has filed administrative proceedings against UBS Securities LLC for unethically misrepresenting auction-rate securities it underwrote and remarketed for the state's nonprofit student loan lender.

The 42-page complaint, which was filed yesterday by the state's Bureau of Securities Regulation, charges that the Swiss-based bank violated its fiduciary duty as underwriter, remarketer, and adviser to the lender, the New Hampshire Higher Education Loan Corp., and its conduit, the New Hampshire Health and Education Facilities Authority, by pushing them to remain in ARS and raise the rates on the securities when UBS knew the market was heading for collapse. The complaint is to be heard by the bureau.

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