WASHINGTON -- The Securities, and Exchange Commission shed a little more light on what it considers to be an excessive markup in municipal securities when it reduced the fine that regulators recently levied on a Honolulu broker.

The SEC announced yesterday that it has concluded that First Honolulu Securities and Charles F. Jacobson, the firm's former chairman, should not be fined for mark-ups below 5% because industry participants may not have realized when the transactions took place in 1990 that such markups might violate the Municipal Securities Rulemaking Board's rules of fair practice.

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