Many of you have asked for an update on the SEC's 2014
Municipalities Continuing Disclosure Cooperation Initiative
(MCDC). The MCDC is a self-reporting initiative for
underwriters and state and local governmental bond issuers, such as
school corporations, targeting misstatements in Official Statements
regarding prior compliance with Continuing Disclosure Undertaking
Agreements under SEC Rule 15c2-12.
Orders Regarding Underwriters
On September 30, 2015, the SEC announced a second round of
settlements with underwriters of municipal bonds under the
SEC's MCDC Initiative. In this round of settlements, the
SEC announced cease and desist orders for 22 municipal bond
underwriting firms, finding violations of federal securities laws
resulting from material misstatements and omissions in Official
Statements and failures by underwriters to conduct adequate due
diligence regarding past continuing disclosure compliance.
The SEC's press release announcing the
