SEC Wants Munis To Feel More Like Stocks

Law360, New York (July 16, 2009, 5:01 PM EDT) -- The U.S. Securities and Exchange Commission has unanimously voted to propose changes to SEC Rule 15c2-12 to improve municipal securities disclosure, aiming to bring it closer to the disclosure levels in corporate securities.

The proposed changes would expand some existing rules to cover variable rate demand obligations, increase disclosure requirements for tax risk and hammer out some ambiguous definitions that have favored bond issuers, SEC Chairwoman Mary L. Schapiro said Wednesday before an open meeting of the commission.

Rule 15c2-12 prevents brokers and other bond dealers...
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