SEC Announces Further Enforcement Actions in the Municipalities Continuing Disclosure Cooperation Initiative

November 12, 2015

The U.S. Securities and Exchange Commission (SEC or Commission) announced enforcement actions against 22 municipal underwriters on September 30, 2015, as part of its Municipalities Continuing Disclosure Cooperation Initiative (MCDC). This announcement follows on the heels of a similar announcement of enforcement actions against 36 municipal underwriters three months earlier.

In the actions, the SEC alleged that the underwriting firms had: (i) violated federal securities laws by selling municipal bonds through the use of offering documents containing materially false statements or omissions about the bond issuers’ compliance with their continuing disclosure obligations; and (ii) failed to conduct adequate due diligence relating to the issuers’ compliance with their continuing disclosure obligations, before the underwriters offered the bonds. Respondents in SEC enforcement actions generally neither admit nor deny the SEC’s allegations.

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