It’s time for issuers and underwriters of municipal securities to tattle–on themselves. The Securities and Exchange Commission has launched a Municipalities Continuing Disclosure Cooperation Initiative to encourage issuers and underwriters to self-report violations of federal securities laws, according to Kimberly Witherspoon of Haynsworth Sinkler Boyd.
The initiative will “recommend favorable settlement terms” if disclosure regarding materially inaccurate statements is made relating to prior compliance with the continuing disclosure obligations in the Securities Exchange Act, she says. Underwriters are generally prohibited from purchasing or selling municipal securities unless the issuer discloses certain information about financial conditions and operating data. And rules dictate that “any final official statement prepared in connection with a primary offering of municipal securities contain a description of any instances in the previous five years in which the issuer failed to comply,” says Witherspoon.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
