SEC Finds "Good Cause" for Granting Waivers to MCDC Underwriters

Pursuant to the Municipalities Continuing Disclosure Cooperation Initiative ("MCDC"), "a self-reporting program intended to address potentially widespread violations of the federal securities laws resulting from misrepresentations in municipal bond offering documents about prior compliance with continuing disclosure obligations," the SEC determined that "good cause exists for not denying" certain underwriters (i) various exemptions from registration and (ii) waivers from being ineligible issuers.

The SEC noted that due to the "unique nature of the MCDC Initiative, this order and the circumstances under which it was issued shall not be relied upon by any entity that may seek a waiver in the future" from the same disqualifications.