United States

SEC modifies disclosure initiative for municipal issuers


In March, the SEC announced a Municipalities Continuing Disclosure Cooperation Initiative, under which its Enforcement Division will recommend standardized, favorable settlement terms to municipal issuers and underwriters who self-report that they have made inaccurate statements in bond offerings about their prior compliance with continuing disclosure obligations specified in Rule 15c2-12. Issuers and underwriters must self-report potential violations of such disclosure obligations by submitting a questionnaire. To allow issuers and obligors more time to complete their reporting obligations, the SEC has extended the deadline to self-report potential violations from September 10, 2014 to December 1, 2014. The deadline for underwriters remains unchanged at September 10, 2014. Eligible parties who do not self-report and instead decide to take their chances can expect to face increased sanctions for violations. Questions regarding the SEC's initiative may be directed to MCDCinquiries@sec.gov.