WASHINGTON -- A controversial recommendation by a commissioner of the Securities and Exchange Commission that broker dealers put in writing their reasons for recommending more speculative bonds to retail investors has the backing of investor groups, but is not going over big with regional firms.

Investors are being "misled, lied to, and vitimized by unscrupulous and ill-prepared brokers," said James W. Fennell, president of the Municipal Bondholders Association of Colorado, in a letter to SEC Commissioner Richard Roberts, who called for written "suitability" determinations for unrated and conduit bonds in a speech before the Public Securities Association in late February.

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