Investors holding auction-rate securities (“ARS”) sold by Raymond James will have to initiate legal action against the firm to recoup their ARS losses or prepare for a long wait as they continue to hold the illiquid securities. Although under investigation from the SEC, the Florida Office of Financial Regulation and the New York Attorney General’s Office, Raymond James recently sent out a letter to its purchasers of ARS indicating that it refuses to buy back their securities due to lack of funds.