What is a SEC Rule 15c2-12?
U.S. Securities and Exchange Commission (SEC) Rule 15c2-12 requires dealers, when underwriting certain types of municipal securities, to ensure that the state or local government issuing the bonds enters into an agreement to provide certain information to the Municipal Securities Rulemaking Board (MSRB) about the …
What does incurrence of financial obligation mean?
Incurrence of a financial obligation of the obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the obligated person, any of which affect security holders, if material (emphasis added).
What is 15c2 11?
Rule 15c2-11 was recently amended by the Securities and Exchange Commission (SEC) to provide for additional disclosure by broker-dealers to potential investors and the staff of the SEC has made it clear that it views Rule 15c2-11 as applying to both equity and fixed income securities.
What is a material event notice?
More Definitions of Material Event Notice Material Event Notice means written or electronic notice of a Material Event. “MSRB” means the Municipal Securities Rulemaking Board.
What is the prospectus delivery requirement?
One commenter suggested revising Rule 15c2–8(b) to require delivery of the preliminary prospectus at least 48 hours, but not more than 60 days, prior to sending the confirmation.
What are bond disclosures?
Government bodies take on specific obligations to file information regularly (“continuing disclosure”) when they issue bonds through an underwriter. Failure to affirmatively make such filings has significant consequences. These continuing disclosure obligations are the subject of this Overview.
What are the SEC rules?
Rules and Regulations for the Securities and Exchange Commission and Major Securities Laws
|Securities and Exchange Commission Rules and Regulations
|Organization; Conduct and Ethics; and Information and Requests
|e-CFR Forms Listing PDF Versions of SEC Forms
|Trust Indenture Act of 1939
Who is regulated under the Securities Exchange Act of 1934?
SEC’s Regulatory Responsibilities Under the Exchange Act, market participants are subject to direct SEC regulation. Securities exchanges, such as the New York Stock Exchange and NASDAQ, must register with the SEC under Section 5 (codified in 15 U.S.C.
Who is responsible for adopting rules to achieve the purposes of the securities Acts?
The SEC can adopt rules and regulations to interpret and implement federal securities laws. Companies that must file periodic reports with the SEC and to their shareholders.
What material events must be reported by the issuer?
Issuers must disclose any default, event of acceleration, termination event, modification of terms, or other similar events under the terms of the financial obligation of the issuer or obligated person, any of which reflect financial difficulties. A failure to comply with the undertaking would be a breach of contract.
What is considered a material event for municipal bonds?
Material events are municipal bond issuer information considered to be significant by a reasonable investor. “Material Events” include but are not limited to: Full description of security – Issuer name, bond type (G.O., revenue, pre-refunded, etc.), coupon, maturity, and redemption features (calls, sinking funds, etc.)
Who delivers the prospectus?
Under new rule 154, a prospectus is considered delivered to all investors at a shared address, for purposes of the federal securities laws, if the person relying on the rule delivers the prospectus to the shared address and the investors consent to delivery of a single prospectus.
What are the disclosure requirements for a new issue of municipal securities?
Which of the following disclosure documents is used for a public offering of corporate securities?
A prospectus is a formal document that is required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering to the public. A prospectus is filed for offerings of stocks, bonds, and mutual funds.
Who must adhere to the rules of the Securities and Exchange Commission?
Since the Act was amended in 2010, generally only advisers who have at least $100 million of assets under management or advise a registered investment company must register with the Commission.
What is SEC Rule 15c2-12?
The Securities and Exchange Commission (SEC) Rule 15c2-12 promulgated under Section 15 (c) (2) of the Securities Exchange Act of 1934, contains disclosure and continuing disclosure requirements applicable to municipal securities.
What does 15c2-12 stand for?
SEC Adopts Amendments to Rule 15c2-12. Rule 15c2-12 of the Securities Exchange Act of 1934 (Rule 15c2-12) was adopted by the Securities and Exchange Commission (SEC) in 1989 to establish standards for the procurement and dissemination of disclosure documents by underwriters as a means of enhancing the accuracy and timeliness…
Who must disclose financial obligations under the 2018 amendments?
Issuers and obligated persons with continuing disclosure agreements entered into on or after the “Compliance Date” under the 2018 Amendments must disclose, pursuant to paragraph (b) (5) (i) (C) (15) of Rule 15c2-12, material financial obligations incurred on or after the Compliance Date.
Why do we need to update the municipal securities rule of disclosure?
“Disclosures required by these rule amendments will better equip investors and intermediaries to make informed investment decisions about municipal securities.”