SIFMA Says SEC Municipal Bond Disclosure Rule Is "Ripe" for Change

SIFMA President and CEO Kenneth E. Bentsen, Jr. urged SEC Chair Mary Jo White to amend and release further guidance on Securities Exchange Act Rule 15c2-12 concerning municipal disclosure obligations.

Mr. Bentsen reported that SIFMA's dealer and asset management members collectively agree with a MSRB concept proposal to require municipal advisors to disclose information regarding the direct purchases and bank loans of their municipal entity clients to the MSRB's Electronic Municipal Market Access ("EMMA") system for public dissemination (see MSRB Regulatory Notice 16-11). Mr. Bentsen called on the SEC to prioritize this investor protection issue of bank loan disclosure.

In addition, Mr. Bentsen highlighted that the SEC itself recommended several areas "ripe for amendment or interpretive guidance" in its 2012 "Report on the Municipal Securities Market." He noted that the April 12, 2016 SIFMA Whitepaper on Securities Exchange Act Rule 15c2-12 suggests further opportunities for improvement in framework structure, and guidance interpreting application and compliance in the municipal securities market.