MSRB Urges SEC to Revisit Municipal Securities Market Disclosure Rule

The MSRB submitted a comment letter to the SEC, which it urged to conduct an "extensive review" of the municipal securities market disclosure requirements in Exchange Act Rule 15c2-12.

In its letter, the MSRB explained that changes to the municipal market, such as the increasing prevalence of bank borrowing by issuers, warrant a review of the disclosure regime. The MSRB also encouraged the SEC to look to its disclosure standards for the corporate market as a precedent for the disclosure of off-balance sheet obligations, such as bank loans.

The MSRB stated that requiring similar reporting by municipal issuers would address "concerns about these obligations that are not subject to Rule 15c2-12 and therefore are not now reported." Additionally, the MSRB noted that making available the timely disclosure of additional debt in any form, as well as debt-like obligations, is "essential" to foster market transparency and ensure a fair and efficient municipal market.

See: MSRB Comment Letter.