Municipal Securities: Options for Improving Continuing Disclosure, GAO (Dodd-Frank Study)

This interesting report addresses (1) the extent to which information currently provided on municipal securities is useful for investors and the extent to which existing regulations reflect principles for effective disclosure, and (2) options for improving the information issuers disclose to investors of municipal securities. The report both identifies weaknesses in the system of disclosure applicable to municipal entities and the difficulty of correcting these weaknesses; e.g., (i) can municipal issuers (many of which are small and financially strained) afford to keep current with good financial reports; (ii) do the regulators have the resources to review disclosure by municipal issuers; and (iii) how much do investors really read and understand of the disclosure provided. The report is interesting not just for what it says about municipal securities, but for its discussion of policy issues in regard to disclosure generally. (See also today's news items on MSRB Rule G-17.)

Cross References: Dodd-Frank Section 976; Dodd-Frank Studies table.

View study in full here (links externally to GAO website).