Not affected by the Presidential executive orders freezing regulatory action(as an independent agency),on March 1, the Securities and Exchange Commission voted to propose amendments to Rule 15c2-12, with the goals of improving investor protection and enhancing transparency in the municipal securities market.
The proposed amendments to Rule 15c2-12 add two event notices to Continuing Disclosure Agreements. First, issuers and obligated persons must disclose information on the incurrence of alternative financings, including bank loans, direct placements, and similar obligations, and terms of such financings. Second, issuers and obligated persons must disclose any default or termination events with regard to those alternative financings. Acting Chairman Piwowar said the changes would “empower investors by improving their access to current information about the financial obligations incurred by municipal issuers.” The public comment period will remain open for 60 days following publication of the proposing release in the Federal Register.
The proposed amendments to Rule 15c2-12 add two event notices to Continuing Disclosure Agreements. First, issuers and obligated persons must disclose information on the incurrence of alternative financings, including bank loans, direct placements, and similar obligations, and terms of such financings. Second, issuers and obligated persons must disclose any default or termination events with regard to those alternative financings. Acting Chairman Piwowar said the changes would “empower investors by improving their access to current information about the financial obligations incurred by municipal issuers.” The public comment period will remain open for 60 days following publication of the proposing release in the Federal Register.
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