SEC Issues Second Round of Municipal Disclosure Settlements
On September 30, the SEC issued its second round of mass settled actions over municipal securities disclosure issues, as part of its Municipal Continuing Disclosure Cooperation ("MCDC") Initiative. In this round, 22 municipal underwriters will undertake remedial measures and pay fines (ranging from $20,000 to $500,000 and totaling $4.12 million) for disclosure violations. Announced in March of 2014, the MCDC Initiative offered structured settlements for municipal underwriters and issuers who voluntarily "came in from the cold" to self-report failures of new bond issuers to adequately disclosure whether they had been keeping up with their periodic financial-reporting obligations in prior issues. The program had a five-year "look back" and was intended to rapidly bring municipal-market financial disclosures into compliance. Under the program, cooperating self-reporting municipal underwriters agreed to accept sanctions ranging from $20-60,000 per offering (capped at $100,000 to $500,000, depending on size and number of issues involved), cease and desist orders and independent-consultant review of municipal compliance programs. The SEC's order granting disqualification waivers lists this round's Respondents:'33 Act Rel. No. 9956 (September 30, 2015), here. See also Administrative Releases here. I discussed the first round of settlements here. Thomas K. Potter, III ( is a partner in the Securities Litigation Practice Group at Burr & Forman, LLP. Tom is licensed in Tennessee, Texas and Louisiana. He has over 29 years' experience representing financial institutions in litigation, regulatory and compliance matters. See attorney profile. © 2015 by Thomas K. Potter, III (all rights reserved)
Posted in: SEC
Jump to Page
Arrow icon Top

Contact Us

We use cookies to improve your website experience, provide additional security, and remember you when you return to the website. This website does not respond to "Do Not Track" signals. By clicking "Accept," you agree to our use of cookies. To learn more about how we use cookies, please see our Privacy Policy.

Necessary Cookies

Necessary cookies enable core functionality such as security, network management, and accessibility. These cookies may only be disabled by changing your browser settings, but this may affect how the website functions.

Analytical Cookies

Analytical cookies help us improve our website by collecting and reporting information on its usage. We access and process information from these cookies at an aggregate level.