Securities division settles with Stifel Nicolaus

Stifel Nicolaus and Co. will accelerate its repurchase of auction rate securities for all of its investors holding less than $150,000 by December 2010.

Every Colorado investor with Stifel will receive at least a partial payout no later than Jan. 15, according to the terms of an agreement  worked out with the Colorado Division of Securities.

Stifel will accelerate its final buyback – previously scheduled for June 2012, so that all eligible auction rate holders will receive a full buyback no later than the end of 2011.

The settlement also requires the company to work with a bank affiliate to offer interim loans to customers that need immediate cash, and to hire a securities industry expert to make recommendations on supervision, training, marketing and selling nonconventional products.

In addition to Colorado investors, the agreement also affects investors in Missouri and Indiana.