On June 29, 2011, the SEC instituted settled administrative and cease-and-desist proceedings against Raymond James & Associates, Inc. and Raymond James Financial Services, Inc. According to the SEC: "Respondents offered and sold to some of their customers financial instruments known as auction rate securities ('ARS') while not accurately characterizing or while failing to adequately disclose the true nature and risks associated with these investments. ARS are bonds or preferred stock whose liquidity depends upon sufficient demand at periodic securities auctions. Although Respondents' ARS trade confirmations, sent after customers purchased ARS, disclosed the risk that these auctions could fail and that Respondents were not obliged to ensure their success, at the point-of-sale, some of Respondents' registered representatives and financial advisers improperly described ARS as safe, liquid alternatives to money market funds and other cash-like investments, without adequately disclosing the auction process or the risk of illiquidity if these auctions failed. On February 13, 2008, a significant number of ARS auctions failed, resulting in an overall market collapse that left thousands of investors, including Respondents‟ customers, holding ARS that they have not been able to liquidate."