WASHINGTON -- The Securities and Exchange Commission is investigating whether Piper Jaffray adequately disclosed the risks associated with derivatives to hundreds of investors in at least one of its mutual funds that suffered huge derivatives-related losses.

Officials with the Minneapolis-based investment company confirmed this week that SEC officials from Washington and Chicago have asked them for copies of annual and quarterly financial reports as well as the prospectus and sales materials given to investors of the Institutional Government Income Portfolio.

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